Understanding the Selling Process

 

The selling of a property can be just as confusing as its purchase. Here is a simple explanation of the various stages of the property sale process.

In New Zealand, the process of selling property is regulated by the Real Estate Agents Authority (REAA) and follows a regular pattern.

Property appraisal

Initially, you must seek Written Market Appraisal, whereby an agent inspects the property and provides you with their best estimate of the price/range they expect your property could be sold for, based on sales for similar properties in your area.  Once this formal process is completed the agent will discuss your preferred method of sale and an advertising strategy with you.

Marketing your property

Once you have agreed for the agent and agency to market your property, you will then be required to complete all property listing details on an agency agreement. 

Your Harveys Agent will also discuss the best marketing methods for your property.  Professional Photography is vital to put your property at the forefront of the market.  They we can also market your home through our various online services, in our office windows, print media and to their own databases

Property Viewings

The next step is to allow plenty of notice regarding inspection times for the property. Be flexible in the times that your house is open for inspection to accommodate a greater number of people. Details about all attendees should be recorded along with a full list of comments and feedback.

Interested Buyers

At this point, a Harveys Agent will check and assist with the purchaser’s finance, sale of property, building inspections and other conditions where necessary.

Sale and Purchase Agreements

Once there is interest from buyers, the negations process will commence. This is the most important part of the process as you will be seeking the best price and conditions from the interested parties. A Sale and Purchase Agreement provides certainty to the buyer and seller. These agreements are a legally binding and they state the agreed terms and conditions of the sale/purchase. If necessary, the buyer/seller can negotiate through the agent until there is an agreement on price and conditions. The seller may also opt for an escape clause which allows you to keep the house on the market while the buyer sorts out the conditions such as arranging finance. If you receive another offer during this period, the clause gives the buyer a set number of days to make it an unconditional offer. If they do not act, you are free to take up the other buyers offer.

Deposits

Once the exact terms are agreed on by both parties, where possible, a deposit is taken from the buyer and copies of the contract are given to the solicitors or conveyancers on each side. All parties are kept informed of the progress of the contract.

Sold!

The property is no longer on the market and now it is time to finalise the agreement. The agreement will outline the settlement date. This is the date when the buyer pays the rest of the amount agreed for the property, usually through their solicitors or conveyancers. The keys are handed over once the Agency has received written notification from both the buyers and sellers solicitors/conveyancers that the property has in fact settled and the new owners can move into the property.