Selling Real Estate In South Australia
Everything you need to know about selling property in South Australia
Selling real estate in South Australia can be a complicated process, but with this information by your side everything should be quite simple.
Ready to sell your South Australian real estate? Whether it is a central Adelaide apartment or acres of farmland, LJ Hooker’s team are ready to help you.
And while we're sure there will be no shortage of people lining up to buy, it always pays to make sure you have all the information required to make a fantastic sale. From finding an agent to finalising the settlement, we've got you covered with these links, resources and the right information!
Choosing an agent
Real estate agents can be the cornerstone of your SA property sale. They provide advice, negotiate on your behalf and do all of the marketing legwork that you might not have time for. However, you have to make sure you're working with someone that is right for you. Here are some of the questions you should be asking an agent before you sign on with them:
- Do they have the appropriate license?
- Have they made quality and ethics assurances to Consumer and Business Services SA?
- How long have they been licensed and working in your particular area? What is their local sales history?
- Are they experienced at selling your type of property? How would they market and sell it?
- What is their commission and fees? When and how would these be paid? Have they filled out a disclosure of benefits form?
- Do they have previous sale references?
- What is their estimated sale price? Do they have evidence to back up their estimate?
- Does marketing and advertising cost extra? Exactly how much does it cost and what are the services?
If you are satisfied with this, you can sign a sales agency agreement with your representative. This appoints them as the sole authority to sell your home, or joint authority with other agents. This document will include the answers to the above questions, as well as any grounds for termination - more details can be found through the SA Government.
At LJ Hooker, we have real estate agents right across South Australia with years of experience selling property. Call your local office if you have any questions about choosing the right agent.
Methods of selling SA real estate
There are several methods of selling SA property and each has its own benefits and risks. Your LJ Hooker real estate agent can provide you with in-depth analysis of how each method would apply to your property specifically, but here is an overview of the main methods:
This is a process where buyers negotiate with your agent to meet a sale price set by you at the outset. Your real estate agent will negotiate as close to your listed price as possible and the sale may be conditional on inspections or home loan pre-approval. A cooling-off period of two business days applies here, wherein the buyer can withdraw from the sale.
An auction is a single event, rather than an ongoing process like private treaty. You set a reserve price (no more than 110 per cent of the price outlined in your sales agency agreement) and buyers register before placing bids at the auction.
If the reserve is reached, the highest bidder is obliged to buy the property and pay a 10 per cent deposit on the spot - there is no cooling-off period. If reserve is not reached, the property is passed in and buyers may negotiate with your agent for a fair price. It is important to set a realistic reserve - your LJ Hooker agent can give you advice on this.
The tender process is one whereby you receive offers accompanied by a deposit from purchasing parties. You can reject these and accept one you deem satisfactory. This is a confidential process with no limit put on the offered bids.
Get in touch with a local LJ Hooker agent for more details on the benefits and drawbacks of each for your SA property sale.
Marketing your SA property
No matter the method of sale for your SA property, the marketing process is going to be vital - this dictates the exposure and interest your home generates. Your LJ Hooker agent can provide valuable advice on the best way to advertise, but there are two main methods:
In South Australia, The Advertiser is the biggest newspaper and a likely candidate for print advertising. It has a readership of 434,000 during the week and 456,000 on Saturdays. Combining this level of advertising with local papers and magazines, as well as publications like LJ Hooker's leaflets, is an excellent way to promote your SA property sale.
All big newspapers have online listings now which can provide excellent exposure. For example, The Advertiser's total readership (including online) is more than 1.5 million. Combine this with sites like realestate.com.au, domain.com.au and ljhooker.com.au for heightened advertising.
Couple this with professional photography and even video shooting to improve the appeal of your home. LJ Hooker's local offices have excellent contacts for providing these services.
Contracts of sale in South Australia
The contract of sale is a document usually prepared by your real estate agent, which becomes a legally binding agreement once signed by both you and your home's buyer. It should contain the following information:
- The price of the property and deposit details
- What the date of settlement will be
- Any title documents required for the property transfer
- Any conditions of the sale (for example pre-approval for a home loan, building and pest inspections)
- If any furniture or appliances will be left in the property
This is a very important document for the sale process, and it is highly recommended that a solicitor or conveyancer assist you and your agent when drawing this up.
The costs of selling property in South Australia
Every cost, big or small, should be factored into your planning. When selling property in South Australia, it can include the following:
- Agent commission (this is stated in your sales agency agreement)
- Fees for conveyancers and solicitors ($1,500 to $3,000)
- Pest and building inspections (can be between $500 and $700 for a full interior and exterior building check)
- Marketing fees and any reimbursement of your agent's expenses (outlined in sales agency agreement)
- Rates and taxes up until the settlement date
- Paying off the remainder of your home loan, or fees for establishing a new mortgage with your lender (up to $1,000)
- Moving costs (between $500 and $3,500)
- The costs of cosmetic work (a few hundred dollars) or renovations (as much as $15,000 for a full plumbing fix)
- Auctioneer fees, which can be $1,000
Your LJ Hooker real estate agent can help you stay on top of every cost that will be incurred when selling your SA property, so you can budget accordingly. Nobody likes to be stung with hidden costs, so research and planning is essential.
Settlement of an SA property sale
If enough interest is generated and you receive offers on your home, then you will be ready for the next step - the settlement of your SA real estate. For the paperwork and negotiations, you will usually use a solicitor or conveyancer - the state division of the Australian Institute of Conveyancers can help you source someone for this.
The exact process will be slightly different depending on your sales method:
If you accept an offer or your agent negotiates to a satisfactory price point, you and the buyer sign and exchange contracts and the 10 per cent deposit is paid to you. If the buyer does not cool off, the settlement process continues - normally over 30 to 90 days.
The exchange of contracts for auction occurs either when the highest bidder above reserve emerges, or you negotiate to a satisfactory price when the property passes in below reserve. Without a cooling-off period, the settlement period begins upon the exchange of contracts and payment of deposit.
At the settlement date, all documents are finalised, the remainder of the money is paid and keys and title are transferred to the buyer. For any further questions about selling property in South Australia, make sure to get in touch with your local LJ Hooker agent!