Selling Real Estate in Tasmania
Everything you need to know about selling property in Tasmania
When you're selling your Tasmanian property, it's important to have the right information and help on your side at all times.
Whether they are deciding to move to the mainland or simply want to upgrade around the corner, people are always selling Tasmanian property. Despite its small size, the southernmost state actually has a fairly busy property market which means you have to come prepared when you're selling.
On this page, you'll find everything you need to know to make your Tasmanian property sale an excellent one.
Choosing an agent
First up, you will need the right real estate agent to sell your Tasmanian home. Having a professional on your side gives you added expertise, as well as a cool head at the negotiating table or on the auction block. They will also handle the advertising and marketing of your home, and as such, you need to make sure you ask the right questions before you agree to work with an agent:
- Are they registered with the Property Agents Board?
- Do they abide by the guidelines laid out by Consumer Affairs Tasmania?
- What is their commission?
- Are there extra fees and what services will these cover?
- What do they think your property will sell for and can they back up this estimate with evidence or similar sale figures?
- What is their experience with selling in your area, or with this type of real estate?
- Do they have references that you can check?
- Will certain types of advertising cost extra?
- How would they sell your property?
If you are satisfied with how an agent responds to these questions, you can move forward and sign a sole agency agreement, or even engage multiple agents - but you may have to pay more than one commission in this case. LJ Hooker has offices all across the country and our agents have in-depth experience with each and every property market. If you want to start asking these questions, get in touch with your local office!
Methods of selling Tasmanian real estate
While your local LJ Hooker agent can be an excellent resource to help you understand the various ways of selling Tasmanian real estate, it pays to arm yourself with your own knowledge. Generally, these are the methods that people use to sell Tasmanian property:
In a private treaty sale, your real estate agent negotiates on your behalf with buyers that submit offers on your home based around the listed price - if there is one. There might be conditions put upon the sale: for example, the purchase may only go ahead if your home passes a building inspection.
Auctions are a one-off event, whereas private treaty is an ongoing process over the course of weeks or months. At auction, buyers or their agents place bids on your home. You set a reserve price, which is the minimum you want the home to sell for. If bids surpass the reserve, then the highest one will own the home and must pay a 10 per cent deposit on the day. If the bids fail to reach reserve, the auctioneer or your agent can negotiate with buyers post-auction. Once again, there are no cooling off periods.
It is important to set a realistic reserve price to ensure a good result at auction - your LJ Hooker agent can help you set a good figure at the outset.
When selling Tasmanian property by tender, you do not necessarily list a price. Rather, buyers make offers themselves alongside conditions and a deposit, which your agent can communicate to you. It is not required that you accept any of these offers.
To help you decide on the best way to sell Tasmanian property, make sure to talk to an LJ Hooker real estate agent.
Marketing your Tasmanian property
How your real estate agent advertises your home will dictate how much interest there is from buyers. More people looking to purchase can increase competition and net you a better price in the long run. There are a few different methods of marketing Tasmanian property for sale:
In Hobart and Tasmania, The Mercury is the main newspaper with a readership of 95,000 people during the week and 108,000 on Saturdays. Couple advertising in The Mercury with local newspapers and print publications from agencies like LJ Hooker, and you can present your home to a maximised number of people that pick up the paper specifically for the property pages.
The advent of the internet has made it a prime location to boost exposure of Tasmanian property for sale. For example, the total readership of The Mercury (including online) adds up to 330,000. Using sites like domain.com.au, realestate.com.au and ljhooker.com.au can put your home on some of the most sought-after listings sites on the internet.
This needs to be done in conjunction with professional photography and perhaps even video tours of your home to boost interest - talk to your LJ Hooker real estate agent about how to make this happen.
Contracts of sale in Tasmania
The contract of sale is one of the most important documents in the property selling process. It contains the particulars of your property and copies of it are signed and exchanged between you and the buyer as the transaction takes place. In Tasmania, it will include:
- The details of you, the buyer and any real estate agents, solicitors and conveyancers involved in the process
- Details on the real estate and the price it will sell for;
- The chattel (items on the property that aren't the home itself);
- How the deposit is being pa and how much it is; and,
- When the transaction takes place, when it will be settled and any special clauses or conditions of the sale.
Using a solicitor or a conveyancer to work through this document is highly recommended.
The costs of selling property in Tasmania
There are many costs both large and small when you sell Tasmanian property and it is important that you understand and account for all of them. These can include:
- Paying agents' commission (this is outlined in your agency agreement)
- Solicitor and conveyancer fees (allow for $1,500 to $3,000),
- Auctioneer fees (up to $1,000)
- Pest and building inspections (anywhere between $300 and $700, sometimes more depending on the property's size),
- Extra fees for marketing - outlined in your agency agreement,
- Paying off the remainder of your home loan and perhaps up to $1,000 for setting up a home loan on a new property,
- The costs of any renovations you perform before the sale - a kitchen fix, for example, can be $15,000,
- Rates and taxes up until the settlement is complete,
- Moving costs (up to $3,500).
To make sure you are on top of each and every cost involved in selling Tasmanian property, it is a good idea to plan out everything with your LJ Hooker real estate agent.
Settlement of a Tasmanian property sale
Once everything comes together for your Tasmanian property sale, buyers will be lining up to make offers or place bids at auction. When an auction passes reserve or you receive an offer you want to accept, then the settlement process will begin to take place.
If you accept an offer, the contracts of sale are exchanged and you receive the deposit. This is normally 10 per cent of the sale price, but it can vary as negotiated between you, your agent and the buyer. You will also dictate how long the settlement period is - usually 30 days, but as the Real Estate Institute of Tasmania points out, with inspections it can be extended to 45 days.
Remember, there is no cooling off period in Tasmania - once the exchange occurs, the process is locked in.
The exchange of contracts and payment of deposit at auction usually occurs immediately after the close of bidding, at which point the settlement process begins. If negotiation occurs because a property passes in (does not reach reserve), then there may be a delay on this part of the process.
Once contracts are exchanged and settlement begins, you continue to own the real estate until the final settlement date. At this point, the remainder of the price is paid, you hand over the keys and title is officially transferred. Congratulations, you have sold your Tasmanian property! For any questions, make sure to get in touch with the LJ Hooker team.