Sell a property

Real estate agents' fees are generally made up of:

• a base fee, usually around $500 plus GST
• marketing costs to pay for advertising
• a commission, which is a percentage of the sale price.

Commission rates vary but are normally between 3% and 4% of the sale price, plus GST. Agents selling more expensive homes may charge a lower rate. Depending on how you decide to sell your home, you may also have to pay costs for advertising even if the property doesn't sell.

Negotiate these fees with your real estate agent if you can, especially if you sign up with a sole agency.

If you're moving within the same city or town, you can expect to pay between $1,000 and $3,000 for a professional removal company. Try to get two or three quotes, as prices can vary.

The cost of moving will also depend on whether you do the packing yourself or get the moving company to pack for you. If you choose to do it yourself, most movers have boxes you can buy to make it easier.

Some movers include insurance for the move in their quote or you can talk to your current house and contents insurer. Some insurers only provide cover if a professional mover packs for you.

Government valuations (or GVs) don't always reflect a property's true market value or sale value. They don't take account of chattels such as curtains, carpets and light fittings or any special features that add to your home's value. They can be a good place to start working out your asking price.

A good real estate agent will be familiar with the market and know the selling prices of other properties in your area. Most are happy to do a free appraisal, but this is only the agent's view of your property's value and different agents may have different views on what a home is worth.

A valuation from a registered valuer can give you a more accurate indication of your home's worth. However, it can cost $500 or more. The valuer will visit your home and assess its current condition and features. They'll also take into account recent property sales in your area to give you a fair market value.

Most homeowners and investors start with a DIY valuation, which means:

• considering your property's overall characteristics, its location and nearby community infrastructure.

A healthy business district is a good indicator of strong property values, as are low crime rates, reputable schools, a good transport infrastructure and lifestyle features like cafés, shops and restaurants. Planning and zoning are other factors, for example, a new motorway can positively or negatively affect values.

• monitoring your local area for comparable sales.

Look for properties with a similar streetscape, architectural features and land size. They should have the same basic configuration and internal features (number of bedrooms, bathrooms, parking, etc).

• adjusting your home's value up or down to take into account any apparent negatives or positives.

A sole agency is when you give just one real estate agent or agency the right to sell your home on your behalf. Sole agencies are generally for a set period (usually one to two months) during which you can't list your property with any other real estate agencies or try to sell it privately.

Agents often prefer to have a sole agency and may make more of an effort to sell your home than if it's listed with several agencies. You may be able to use this to your advantage and negotiate lower rates for costs such as advertising.

A general agency is when you list your home with several different agencies. It means you can sell your home by private sale if you choose to.

However, you may end up with more open homes and higher advertising costs than when one agent is trying to sell your home. Only the agency that sells your home gets the commission.

When you've decided on an agency (or agencies) you'll be asked to sign a "listing agreement" - a contract that sets out the details of your arrangement, including:

• what you've agreed the agency will do
• how the agent will sell your home (by negotiation, auction or tender)
• all fees and commission
• any extra costs you'll pay.

Agreements vary, so it's a good idea to ask your lawyer to take a look at each agreement to make sure it's what you want before you sign it. While the listing agreement restricts who can sell your home, you still have the right to take it off the market any time if you change your mind about selling.

The buyer makes an offer and you have the chance to negotiate until you're both happy with the price.

Once you've set an asking price, your real estate agent will place your home on the market. This normally means they place advertising signs on the front of your property, hold open homes and advertise in the local press or other magazines.

When someone makes an offer, you can accept it straight away or negotiate on the price or conditions by replying with a "counter-offer". The real estate agent acts as the go-between until you and the buyer agree on a price and any conditions.

Remember, the offer may be lower than your original asking price, and offers can be conditional or unconditional.

The agent will prepare a "sale and purchase agreement" - a written document that outlines:

• the offer amount
• the settlement date
• any conditions that must be met before the sale goes ahead.

Any counter-offers are written on the agreement and signed by both parties.

If you receive more than one offer, you may like to consider accepting an unconditional offer that is slightly lower than a higher offer that has a number of conditions. You'll also need to consider the settlement period the buyer offers, as this may affect your ability to find and buy another home.

It's a good idea to discuss the sale and purchase agreement, and any subsequent changes to it, with your lawyer before you sign it. Once both you and the buyer have signed the agreement it's legally binding.

You set a reserve price and buyers then bid against each other until only one bidder is left.

Selling your property by auction lets you set your own sale date.

Your real estate agent will explain the auction process in detail, but one of the key things to do is set a "reserve" price. This is the price that bidding must get to before you're obliged to sell. Only you, your real estate agent and the auctioneer will know the reserve.

If the reserve price isn't met, the property will be "passed in" and you'll have the opportunity to negotiate with the highest bidder. If you can't agree on a price, you can negotiate with the other bidders.

All bids at auction must be unconditional.

Once your home is sold, the successful buyer will sign a contract and pay a deposit (usually 10%). Settlement is generally four to six weeks later.

If you receive a good offer before the auction date, you can sell your home without going to auction. Alternatively, you can choose to stipulate that the property "will not be sold prior" to maximise interest on auction day.

Auctions generally require more advertising than other sale methods, so you may have to pay a little more for advertising costs and possibly the costs of the auctioneer. Be sure to clarify this with your real estate agent.

Everyone interested in your home submits a written offer, usually at the same time. Each potential buyer is unaware of the others' offers. You choose the offer you like best or negotiate with one or more buyers until you reach a satisfactory offer.

Tenders involve buyers making an offer without knowing how much anyone else has offered. They generally work best with high-value homes or properties that create a lot of interest. Be sure to discuss the pros and cons with your real estate agent.

Please note: if you're selling by tender, you can use a lawyer or an accountant instead of a real estate agent.

After discussion with you, your real estate agent will draw up a tender document. This sets out:

• how the tender must be made
• the settlement date
• the deposit required
• how long tenders stay valid.

Tenders can be conditional or unconditional.

Once the tender has closed, you decide whether to accept any of the tenders. If you're not happy with any of the offers, you can negotiate with the person who made the highest offer through your real estate agent.

If you accept an unconditional offer, both you and the buyer are committed to the sale. If you accept a conditional offer, all the conditions must be satisfactorily met before the contract becomes binding.