When it comes time to sell your house, you want to make sure that everything goes as smoothly as possible. Homeowners need to be careful to AVOID common mistakes when selling a house which can cost them time and money.
In this article, we’ll discuss NINE of the most common mistakes people make when selling their homes.
By avoiding these mistakes, you can ensure a smoother, quicker, and more profitable sale.
1. Using a generic contract of sale
When selling your home, it’s important to have a legally binding contract that outlines the terms of the sale. This contract should be drawn up by an experienced conveyancer and should be specific to your situation.
Any special conditions relating to your property or how you would like the sale to be conducted should be included.
Remember, this is your CONTRACT OF SALE.
Potential buyers are more than able to request changes to the contract, but all of your requirements should be enshrined in the contract first and foremost.
Many people make the mistake of using a generic contract of sale, which may not take into account your unique circumstances.
Often, this can be due to the rush to get the property on the market and potential buyers through the home.
Tick Box Conveyancing enjoys a glowing REPUTATION with some of Melbourne’s biggest and best real estate agencies for our ability to create CUSTOM CONTRACTS that don’t skimp on the detail with great efficiency.
For more information, contact our conveyancers today!
2. Failing to disclose material facts
As the seller, you are required to disclose any material facts about the property that could affect the buyer’s decision to purchase. This includes things like flood risk, boundary disputes, or illegal building works. If you FAIL TO DISCLOSE these material facts, you could be liable for damages if the buyer decides to take legal action.
There are a number of material facts that now need to be included in the Section 32 and you should ensure you speak to a conveyancer to ensure these are all captured.
It’s important to note that you are not required to disclose anything that could be considered common knowledge, such as being located on or near a busy road.
It might be tempting to not disclose certain aspects about your property, but trust us, if it eventually comes out that you knew about a material fact and didn’t disclose it, you could be in a world of trouble.
Tick Box Conveyancing can help you understand exactly what needs to be disclosed in the contract, and we can even help you draft up a disclosure statement.
3. Not negotiating adequate settlement length to find new accommodation
One of the most common mistakes people make when selling a house is not negotiating an adequate settlement period.
Settlement is the period of time between when the contract is signed and when the sale is finalised, and it’s usually around six weeks.
This may seem like plenty of time to find somewhere new to live, but often it’s not enough.
If you’re selling your home and buying another one, you need to make sure you have a settlement period that allows you time to move out of your old home and into your new one.
You should also factor in things like finding a place to store your belongings if you can’t move straight into your new home.
It’s important to negotiate a settlement period that works for you and gives you enough time to make all the necessary arrangements or a License Agreement.
4. Underquoting your house
When selling your home, it’s important to get the PRICE right. If you underquote your property, you could end up leaving money on the table.
Many people make the mistake of thinking that by underquoting their property, they’ll attract more interest and ultimately sell for a higher price. However, this is often not the case.
If you underquote your property, you could end up with a lot of low-ball offers that waste your time and ultimately result in your property selling for less than it’s worth.
It is also now ILLEGAL to do so.
This is an important conversation you need to have with your licensed real estate agent. They will give you an accurate market appraisal based on comparable sales in the area.
5. Removal of fixtures and fittings after a sale is made
Once you’ve sold your property, you might be tempted to remove certain fixtures and fittings that you think will add value to your new home. However, this is not always the case.
Many people make the mistake of removing light fixtures, door handles, or even toilets in an attempt to add value to their new home. However, this often results in the opposite effect.
It’s important to remember that once you’ve sold your property, you have sold it in the condition it was in when the contract was signed.
If you want to remove fixtures and fittings, you need to make sure this is specified in the contract of sale. Otherwise, you could be LIABLE for damages if the buyer decides to take legal action.
6. Changing the property after sale
If you’ve sold your property and then make changes to it, you could be in for a nasty surprise. Once you’ve signed the contract of sale, the property is legally considered to be sold in its current condition.
This means that if you make any changes to the property after the sale is finalised, the buyer could take legal action against you.
So, if you’re planning on making any changes to the property after the sale, make sure this is specified in the contract. Otherwise, you could be liable for damages.
7. Damaging the property after sale
If you damage the property after the day of sale, you could be liable for damages.
You have a legal obligation to deliver the property to the Purchaser at settlement in the same condition it was on the day of sale, save for fair wear and tear.
8. Forgetting about tax implications
If you’re selling your property, it’s important to be aware of the tax implications. Capital gains tax (CGT) is a tax on the profit you make from selling an asset that has increased in value.
If you’re selling your home, you may be liable for CGT. However, there are a number of exemptions and concessions that may apply.
It’s important to speak to a tax professional before you sell your property to ensure you’re aware of any taxes that may apply.
9. Leaving valuable items in the home
Once you’ve sold your property, it’s important to remove all valuable items from the premises. This includes things like jewellery, cash, and important documents.
If you leave any valuable items in the property after the sale, it may be hard to retrieve. So, make sure you take them with you when you leave.
These are just some of the mistakes you need to avoid when selling a house. By following these tips, you can help ensure a smooth and stress-free sale.
Tick Box Conveyancing probably can’t help you make sure you take all your valuables from the home, but we can HELP YOU avoid a few of the other mistakes on this list and prepare a watertight contact of sale!