Selling Your Property – Frequently Asked Questions (FAQs)
- kyle36034
- Jan 31
- 8 min read
Selling a property is a significant decision that involves multiple key aspects, such as choosing the right sales method, assessing market value, understanding transaction costs and tax obligations, working with a real estate agent, preparing your property for sale, and handling contracts and legal requirements. For many sellers, the complexity of the process can bring uncertainty and challenges, making it essential to have clear industry insights and practical guidance.
This FAQ guide is designed to provide you with comprehensive professional advice to help you navigate the selling process smoothly. Covering everything from fundamental knowledge to specific steps, our guide addresses common questions you may encounter and offers clear answers and practical solutions. Whether you are a first-time seller or an experienced homeowner, we hope this guide will support your decision-making and make your selling journey more transparent, efficient, and successful.
1. Understanding the Selling Process
What are the different methods of selling a property?
The three most common methods of selling a property in Australia are:
Private Treaty (Private Sale): You set an asking price, and buyers negotiate with you or your agent.
Auction: A public bidding process where the highest bidder (if above the reserve price) secures the property.
Expressions of Interest (EOI) or Tender: Buyers submit offers by a set date, and the vendor selects the best offer.
How do I sell my property at auction?
Choose a real estate agent and sign an auction agency agreement.
Set a reserve price (the minimum amount you are willing to accept).
Prepare the property and market it before auction day.
On auction day, if bidding meets or exceeds the reserve price, the highest bidder wins.
The winning buyer signs the contract and pays a deposit immediately.
What is a sales agency agreement?
A sales agency agreement is a contract between you and a real estate agent that gives them the right to market and sell your property. It specifies:
The agent’s commission and fees.
The agreed-upon sale method (private sale, auction, etc.).
The duration of the agreement.
Can I sell my house without an agent in Victoria?
Yes, this is called For Sale By Owner (FSBO). However, you will still need to:
Conduct your own marketing.
Arrange legal contracts and disclosures.
Negotiate with buyers directly.
Manage the settlement process.
How long does it typically take to sell a house?
It depends on market conditions, location, and pricing. On average:
A well-priced home in a good market can sell in 30–60 days.
Properties in slow markets may take 3–6 months or longer.
2. Costs, Fees & Financial Considerations
How much will it cost to sell my property?
The costs of selling typically include:
Agent commission: 1.5%–3% of the sale price.
Marketing costs: $2,000–$10,000 (advertising, photography, staging).
Legal fees: $800–$2,500 (conveyancing, contracts).
Auctioneer fees: $400–$1,000 (if selling at auction).
Home preparation costs: Varies (repairs, painting, cleaning).
What are the tax implications of selling my property?
Capital Gains Tax (CGT): If it’s an investment property, you may need to pay CGT on the profit.
Exemptions: If the property was your primary residence, you may be exempt from CGT.
3. Choosing & Working with a Real Estate Agent
How do I know I can trust my real estate agent?
Check their license and credentials.
Read client reviews and testimonials.
Ensure they provide a clear marketing strategy.
What are the responsibilities of an estate agent to the seller?
Pricing and marketing the property.
Conducting inspections and negotiating offers.
Managing contracts and legal paperwork.
4.Property Presentation & Inspections
Why is decluttering important before an open house?
Decluttering makes the home appear larger, cleaner, and more appealing to buyers.
Is a professional building inspection necessary before selling?
It’s not mandatory, but having a pre-sale inspection can help identify issues early and prevent buyer negotiations on repairs.
5. Legal & Contractual Aspects
What does the contract process involve?
The buyer makes an offer.
The vendor accepts and signs the contract.
The buyer pays a deposit.
The settlement process begins.
What is a vendor’s statement (Section 32)?
A legal document that discloses key property details, including title, zoning, and any legal restrictions.
What is the settlement period?
The time between signing the contract and the buyer taking ownership (usually 30–90 days).
What is the cooling-off period?
A period (usually 3 days) where the buyer can withdraw from the contract after signing.
6. Can I sell my property while it is currently leased?
Yes, in Victoria, you can sell a property that is currently leased. The terms of the existing tenancy agreement will influence the sale process:
• Fixed-Term Lease: If your tenants are on a fixed-term lease, they have the right to remain in the property until the lease expires. The new owner will assume the role of landlord and must honor the existing lease terms. You must provide tenants with at least 28 days’ written notice before put on selling.
• Periodic Lease (Month-to-Month): If the lease is periodic, you must provide tenants with at least 60 days’ written notice to vacate if the property is sold and the buyer requires vacant possession.
7. What happens if my property doesn’t appraise for the agreed-upon sale price?
If your property appraises for less than the agreed-upon sale price, several outcomes are possible:
• Renegotiation: The buyer may request to renegotiate the sale price based on the appraisal.
• Financing Challenges: If the buyer’s financing is contingent on the appraisal, a lower appraisal may affect their ability to secure a loan, potentially jeopardizing the sale.
• Contractual Clauses: Review your contract for any clauses related to appraisal values, as they can dictate the next steps.
It’s advisable to consult with your real estate agent or legal advisor to navigate this situation effectively.
8. My agent is recommending I invest in painting and improving the frontage. Is it worth spending money before selling?
Investing in cosmetic improvements like painting and enhancing the property’s frontage can significantly boost its curb appeal, potentially leading to a higher sale price and a quicker sale. First impressions are crucial; a well-maintained exterior can attract more buyers. However, it’s essential to balance the cost of these improvements against the expected return. Consult with us to determine which enhancements will provide the best return on investment in your local market.
9. My buyer wants to conduct a pre-settlement inspection even though they’ve already visited the property. Should I agree?
Yes, it’s standard practice for buyers to conduct a pre-settlement (or final) inspection. This inspection ensures that the property is in the same condition as when the sale contract was signed and that any agreed-upon repairs have been completed. Accommodating this request demonstrates good faith and can help prevent potential disputes at settlement.
10. What are vendor and co-owner bids?
In Victoria, during property auctions, certain bidding practices are regulated:
• Vendor Bids: These are bids made by the auctioneer on behalf of the seller to encourage bidding momentum. The auctioneer must announce when a bid is a vendor bid.
• Co-Owner Bids: If a property is jointly owned, one or more of the owners who genuinely wish to purchase the property can bid during the auction. Co-owners may bid themselves or through a representative but cannot bid through the auctioneer.
11. What are conditional offers, and how do they work?
A conditional offer is a purchase offer that includes specific conditions that must be met for the sale to proceed. Common conditions include:
• Subject to Finance: The buyer’s offer is contingent upon securing suitable financing. If they cannot obtain a loan, they can withdraw from the contract without penalty.
• Subject to Sale: The buyer’s offer depends on selling their current property. If they don’t sell it within an agreed timeframe, they can exit the contract.
• Subject to Building Inspection: The offer is conditional upon a satisfactory building inspection. If significant issues are discovered, the buyer can negotiate repairs, a price reduction, or withdraw from the sale.
These conditions protect buyers from unforeseen issues and provide an exit strategy if specific requirements aren’t met.
12. Is now the right time to sell my property?
Market conditions can vary based on numerous factors, including location, economic climate, and seasonal trends. As of January 2025, Melbourne has experienced a decrease in auction volumes compared to previous years, which may indicate shifting market dynamics. It’s essential to consult with us who can provide insights into current market conditions in your area and help determine the optimal time to sell.
13. How can I add value to my property before selling?
To enhance your property’s value before selling, consider the following:
• Cosmetic Upgrades: Fresh paint, modern fixtures, and updated flooring can make the property more appealing.
• Curb Appeal: Landscaping, clean exteriors, and an inviting entrance can create a positive first impression.
• Minor Repairs: Fix leaky faucets, broken tiles, or any visible wear and tear to present a well-maintained home.
• Declutter and Stage: A tidy, well-staged home allows buyers to envision themselves in the space.
Focus on improvements that offer a good return on investment and appeal to a broad range of buyers.
14. Is it worth upgrading my home before putting it on the market?
Upgrading your home can increase its market value, but it’s crucial to consider the cost versus the potential return. Not all upgrades yield a high return on investment. It’s advisable to consult with us to identify which upgrades are most likely to enhance your property’s value in your specific market.
Selling a property involves several key steps, from choosing the right sales method and understanding costs and taxes to working with a real estate agent, preparing your home for sale, and handling contracts and legal requirements. This FAQ guide provides expert insights on the selling process, market strategies, legal obligations, and transaction details to help you achieve a smooth and profitable sale. Whether you’re a first-time seller or experienced in the market, our guide offers practical information to make your transaction more transparent, efficient, and successful.
Disclaimer
This “Selling Property – Frequently Asked Questions (FAQs)” guide is intended to provide general real estate knowledge and information to help sellers better understand the property transaction process. However, the content provided in this document is for reference purposes only and does not constitute legal, financial, or professional real estate advice.
The real estate market is influenced by various factors, including but not limited to economic conditions, policies and regulations, and market demand, which means information may change over time. We strongly recommend consulting with a professional real estate agent, lawyer, accountant, or relevant expert before making any real estate transaction decisions to receive personalized advice tailored to your specific circumstances.
Our company assumes no responsibility for any direct or indirect losses arising from the use or reliance on the contents of this document, including but not limited to financial losses, legal disputes, or transaction failures. If you have any concerns or require further assistance, please seek professional advice.
