How to Sell a House: Methods, Steps & Expert Guidance | LJ Hooker

How to Sell a House: Your Complete Guide 

If only selling a property was as easy as putting up a signboard out the front and waiting for the offers to roll in from buyers. The reality is there are many steps to take before a sold sticker goes up.

Whether you are upgrading, downsizing, or moving to a different city, listing your home on the market can be an exciting but eventful time. To reduce any stress, we’ve put together a complete guide to navigate the house selling process and set you up for success.

Ways to Sell a House in Australia 

There are so many ways to sell property, it is important to take the time to understand each process and their advantages.

Remember, what works in one suburb for one type of dwelling may not work in another location.

There are three main methods of sale – auction, private treaty, or an Expressions of Interest campaign (EOI) which is a tendering process.

Chat with your local LJ Hooker agent who can advise on the best strategy for your property. Australia’s most iconic real estate brand has been in the business of selling homes for almost 100 years and with that comes unmatched local knowledge and proven strategies to deliver outstanding results.

Auctions

Selling by auction creates competition by giving buyers a deadline to act. Most campaigns run for three to four weeks, and the sale is unconditional.

This method is often favoured by vendors in Sydney and Melbourne where buyer demand is strong, but stock levels are limited. It is also a good strategy to use if there is a need to sell a home quickly.

Proceedings are conducted by a licensed auctioneer and held either ‘in-rooms’ such as a real estate office or ‘on-site’ at the property being sold.

Most Australian states require bidder registration except for Victoria, Western Australia and Tasmania.

A ‘reserve price’ refers to the minimum amount the vendor will accept for their property. This is set before the auction commences and usually not disclosed. When a property is declared to be ‘on the market’ during an auction, it signals that offers have reached the reserve price and it will be sold ‘under the hammer’.

If the reserve price is not reached the property is ‘passed-in’. The agent will negotiate with the buyers to secure a sale.

It is not uncommon for a property to sell prior to auction where the vendor is happy to accept an early offer.

Auction Pros

• It is considered the most transparent sales method as bidding occurs openly and allows buyers to see their competition.

• It provides a clear indication of market value on the day of the auction.

• It creates a sense urgency that prevents buyers from delaying their decision.

• Buyers know the vendor is serious about selling the property.

• Sellers are able to accept an early offer.

• A reserve price means your property won’t sell unless bidding reaches a pre-agreed level.

• There is no ceiling price, so there is potential to achieve a price above your expectations.

• There is no cooling off period – where the buyer can change their mind.

Auction Cons

•  There is no guarantee your property will sell successfully at auction as the reserve price is not always met.

• Potential buyers can be intimidated by the auction process and may not bid.

• Auctions concentrate the buying process into a shorter time frame.

• A serious buyer may need longer to organise their finance and may be unable to participate in bidding.

Private Treaty (For Sale) 

Selling by private treaty gives vendors greater control, more time to consider offers, and the ability to extend the time on the market.

During the marketing campaign, the agent will conduct private negotiations with potential buyers on behalf of the owner. A price guide may or may not be advertised, depending on strategy and state-based legislation.

Once an offer is accepted the sale is subject to a formal contract. Most Australian states have a mandatory cooling off period varying from 2-5 days, with the exception for Western Australia and Tasmania.

A cooling off period allows buyers to withdraw from the sale but forfeit a percentage of the sale price or a penalty. During this period the purchaser should lock in their finance and organise a pest and building inspection.

 Pros of private treaty sale 

• This method of sale is a tried and tested style of marketing.

• It assists buyers to formulate offers that address your desired selling price, which leads to a faster negotiation process.

• Pricing can also be adjusted throughout the marketing stage, based on qualified buyer feedback and local market conditions.

Pros of private treaty sale

• No fixed deadline means there is the potential for the sale to drag out for an extended period.

• There’s no sense of urgency for buyers to act.

• A lack of transparency could result in a lower price as the competition can’t be seen by other potential buyers.

• If the price guide is too high it will reduce buyer interest, lower engagement and may cause the property to sit on the market.

• Buyers can withdraw their offer during the cooling-off period.

 Expressions of Interest/Tender 

Selling by ‘Expressions of Interest’ (EOI) provides all the benefits of a private treaty sale with the urgency of an auction campaign, but without potential stress.

Each party puts forward their best and final offer in writing by a set deadline. They should also include preferred settlement dates, finance conditions and any inclusions or exclusions of the sale. This gives the vendor an option to choose should two or more offers come in at the same price.

Most EOI campaigns run for 4 to 6 weeks. It allows for proper marketing and the running of open inspections. If an acceptable offer is not put forward, then the property can be listed for sale through private treaty or another similar campaign.

Pros of Expression of Interest/Tender campaign

• It shows buyers that the vendor is confident about the property and a successful sale.

• Vendors can keep their desired sale price discreet while letting the market dictate the price buyers are prepared to pay.

• A closing date to create a sense of urgency and create competition

Cons of Expression of Interest/Tender campaign

• Expressions of Interest can be less effective than an auction at driving up the sales price as buyers are unaware of other offers.

• The sales process can be longer, especially if an acceptable offer is not submitted.

• Some buyers may be deterred by the lack of a price guide.

• Marketing costs may be higher to advertise a closing date.

The Home Selling Process (Step-by-Step)

Listing your home on the market doesn’t have to feel overwhelming when following a house selling checklist and supported by the right people. It is all about knowing where to start and adopting a buyer’s mindset. We’ve got you covered with some real estate selling tips.

Book an Appraisal and Set Expectations

Finding out the value of your home is the first and most important step in selling. From here you will be able to plan your next move with confidence. Contact your local LJ Hooker for a property appraisal that will include recent comparative sales in your suburb and ideas to boost buyer appeal.

Prepare Your Home for Sale

First impressions count when selling a house. Remember, the end goal is to make someone else fall in love with the property, just as you once did.

Decluttering will not only make your home more inviting, but it is also a great way to detach yourself emotionally. Photos or personal belongings will prevent a buyer from imagining living in your home, so pack these away. Remove excess bulky furniture to make rooms feel more spacious.

Walk around your home and pretend you are a buyer inspecting it for the first time. Are there some easy cosmetic changes needed - such as a new carpet, coat of paint or high-pressure cleaning the exterior? Or are any major updates required?

Before installing a new kitchen or knocking down walls, chat with your local LJ Hooker agent who can guide you on preparing a house for sale. They may suggest using a professional stylist to make a few tweaks, staging key areas or the entire property. While it is an added cost, this can increase your sale price by 5-10 per cent and sell your home faster.

Choose your method of sale

Familiarise yourself with what method is popular for property sales in your suburb. If an auction looks to be a good strategy, attend a few local ones to get an idea of how proceedings unfold. Your agent will also be able to provide an insight to what will work best in your market.

Develop a Marketing Strategy

Property portals, signboards, brochures and letterbox drops will help to cast your net wide and reach as many buyers as possible. Your agent will organise the marketing of your home including photography, floor plans and professional copywriting. They will also alert buyers on their database who may be house hunting in your area.

Inspections and Buyer Management

Open inspections allow potential buyers to get a feel for the home. Normally there are two open homes - one during the midweek and the other on Saturday mornings. These generally last for 30 minutes. Vendors don’t need to stay at home during these inspections.

Negotiations on Auction Day

During a property auction, proceedings may be paused to seek instructions from the vendor. This usually occurs if bidding has reached or is close to the reserve price.

Your agent may ask if you are willing to adjust your expectations and sell for the highest offer. If you are happy to accept, the auctioneer will announce to the crowd that the property is going to sell. This may cause a flurry of last-minute bidding before the gavel falls, and the home is sold.

Contracts and Settlement

A contract of sale is a legally binding document that sets out the agreed terms and conditions of a property purchase. It governs the relationships between the buyer and seller, including details such as the purchase price, deposit, conditions and settlement timeframe. It is important to have the contract carefully reviewed by a solicitor or conveyancer before signing to ensure the terms align with what has been agreed to by both parties.

Costs and Time Frames

Legal fees, agent commissions, marketing, and potential mortgage discharge or break fees are among the costs you will incur when selling a home. Be sure to budget for minor repairs, cosmetic updates and staging. Don’t removalist or storage expenses.

Time frames for selling your home vary depending on method. An auction campaign usually running 3-4 weeks, private treaty 3-6 weeks and Expressions of Interest campaigns 4-6 weeks.

Choosing the Right Agent

Avoid feeling stuck wondering ‘how will I sell my home?’ by getting in touch with the right people early in the process. After all, whether it is your family home, first home or investment, your property is most likely to be one of your most valuable assets. Choosing the right real estate agent to look after its sale is a big decision. A property appraisal is also a fabulous way to be introduced to agents working in your area. be afraid to ask an agent to provide you with references from past clients. LJ Hooker agents have detailed suburb insights and specialise in pricing properties accurately to maximise value.

Selling by State: Key Considerations

While the home-selling process is similar across Australia, legal requirements may differ from state and territory. It is essential to understand what is included in your contract of sale and your legal obligations.

Most states have strict rules about revealing material facts – this is information that may impact a property’s value or influence a buyer’s decision such as serious crimes, flood or bushfire risks or illegal drug activity.

New South Wales

Auctions are popular in metropolitan Sydney due to strong buyer demand and high clearance rates. Such sales are unconditional with no cooling off period. The successful purchaser pays a 10 per cent deposit on the spot.

Private treaty sales include a five-business day cooling off period, while off-the-plan purchases allow for 10 business days where buyers can change their mind.

Settlement generally occurs six weeks after exchange.

Victoria

Auctions are also common in high-demand areas of Melbourne. According to Consumer Affairs of Victoria, sellers must not conceal or misrepresent a property. Buyers may inspect the property before settlement, which is typically 30 to 90 days and negotiable.

Queensland

Private treaty sales have always been popular in Queensland; however, auctions are being increasingly used in Brisbane and high-demand coastal areas. Contracts are signed first and become legally binding once both parties execute the agreement. Settlement periods range from 30 to 45 days.

South Australia

Auctions are also becoming more common in South Australia, although not as popular as the Eastern States. Cooling off periods apply to private treaty contracts and settlements to be 30 to 60 days, depending on negotiations.

Western Australia

Private treaty sales are more common in Western Australia, while auctions are typically reserved for unique or high-demand properties. Once signed, contracts are generally binding with no cooling off period, often including standard finance and inspection conditions. Settlement usually occurs within 30 to 90 days.

Tasmania

Auctions are a rare event in Tasmania, with most vendors and agents favouring private treaty sales. Property contracts are also legally binding in Tasmania with no cooling-off period once signed. It can however be added to a contract as a special condition.

Australian Capital Territory

In the ACT, sellers must provide a comprehensive contract of sale outlining terms, price and settlement details. Mandatory disclosures include compliance certificates, a licenced builder’s structural report and an Energy Efficiency Rating (EER) statement. A pest inspection is required by law, and homes built before 1991 must also include an asbestos report.

North Territory

In the Northern Territory, the contract of sale must be approved by the Law Society or registrar and is legally binding. Auctions are typically used in high-demand areas, while private treaty sales include a mandatory four business day cooling off period.

FAQs About Selling a Home

What is the best way to sell a house?

It depends on your property and location. If you need to sell by a set date, an auction or EOI campaign may suit. If timing is flexible, a private treaty could be an option. It is always good to talk to your agent about strategy.

How long does selling a house take?

The entire process of selling your house can span three to six months. Typically homes spend around 30 to 40 days to find a buyer, depending on their location. In a hot sellers’ market, the number of days on market is significantly reduced. Settlement is the final transfer of ownership of a property and can take 30 to 90 days from the date contracts are exchanged.

Should I choose an auction or a private treaty?

It is not always easy choosing between auction vs. private treaty when selling your home. Before locking-in either option, check what sales method is popular in your suburb for your style of property. Your life circumstances may also influence which method you choose. If you need a quick sale, then an auction creates a deadline and might also bring about an attractive early offer. If you have flexibility and time, then a private treaty may be the way to go, particularly if it is a familiar method to buyers looking in your suburb.

What should I fix before selling?

Minor repairs may include checking doors are not sticking, all windows open and exhaust fans are in working order. Steam-cleaning the carpet and fixing cracked tiles or chipped paint is also a must. You may have learned to live with these blemishes over the years, but it could prove to be a huge turn-off to a buyer.

What are the costs involved in selling a property?

Preparing your home for sale can cost as little or as much as your budget allows. Some expenses which are part of the process.

• An agent commission typically ranges between 2 per cent and 3 per cent depending on the sale price and location.

• Allow for 1 percent of your asking price for marketing.

• Auction campaigns will add another $400 to $1,000 to your budget.

• If professional staging is required, allow $2,000 to $8,000 in your budget depending on the level required.

Sell your property with LJ Hooker, Australia’s most iconic real estate brand.

 Get a better understanding of your home’s value with a property appraisal. It will contain a detailed breakdown of your suburb and how your home compares to similar local properties, potential areas of improvement and more. Your local LJ Hooker agent is experienced when it comes to knowing how to sell a house and will be there with you every step of the way.