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Advice for Sellers

Choosing an Agency

Choosing the agency to handle the sale of your home is an important decision.

Just because you have bought through an agent, you do not have to sell through them when the time comes. Some agents get you to promise just after they have sold a property to you, to sell it through them when the time comes. This is a totally unrealistic and unfair thing for them to do for a number of reasons. It is important to look around and to ask your friends and family for recommendations on who is active in the area at the time you wish to sell

In the end, it is probably best that you choose an agency with whom you personally feel comfortable, who respects your decisions and who gives you the most supporting evidence for the sale price that they advise you.

Be wary of incompetent agents who don’t give you any sales evidence of comparable properties in comparable locations and who tell you they have to wait until they show buyers through before they can tell you a price. Remember, an agent has the resources to escalate a property from when you bought it to now by the changes in statistics since +/- its extension, renovation if any, or deterioration.


Agent Contracts and Agreement

There are a number of agreement structures available when buying or selling, and we think it pays to be informed.

You deal exclusively with the agent of your choice, whom you appoint for a set period of time. All other agents introduce their buyers through your agent on a conjunctional basis (where the commission is shared). They are acting as a sub-agent and have to act on your behalf, because you are paying the commission.

Where an agent other than your agent has a possible buyer for your home. They ring your agent who grants them a conjunctional which means they will share the commission if that buyer then purchases your home. The other agent does this, because if they do not ask for a conjunctional then it is  likely that their buyer will ring your exclusive agent off the next advertisement or website and then the other agent will not be able to share the commission.

Some sellers think they are best served by giving non-exclusive agency to several agents. The pitfalls are:-

If potential buyers see three adverts in the same paper for the same property, they often think the owners are desperate.
After the initial flurry of advertising most agents will stop advertising as they do not want to waste their time and money when it is possible that another agent will make the sale and they then receive nothing.

This is where the buyer signs up with the agent to find them a house. When a suitable house is found that agent does not share in any of the commission paid by the seller, but is paid separately by the buyer. The agents responsibility in this case is to represent the buyer and purchase the home as cheaply as possible for the buyer. The buyers agent is paid by the buyer to make sure that the buyer doesn’t pay too much, and should provide the necessary evidence to support the offer that is made.

AGENTS IN CONJUNCTION (As distinct from conjunctional deals)
This is where the seller appoints 2 agents as joint exclusive agents. The pitfall here is that one agent may leave the other agent to do all the work. This problem can be overcome by paying the agent who sells the property 80% of the commission. The seller should also ensure that any other 3rd conjuncting agents are paid their normal commission not a reduced amount.

We would be happy to answer any questions you may have, so contact us if you would like some advice or to discuss your options.

Advice For Sellers

If you are selling, you need to be aware of the costs including:

Preparation of Property
This may include painting, gardening, maintenance, de-cluttering, tidying and cleaning so that the property is presented in an optimum manner. Work carried out is at the owner’s expense. We will provide you with a checklist to help you determine what preparation needs to be done. See link here.

Agent’s Fees
The scale of fees charged by Gordon Davies Real Estate is negotiable and therefore can be designed to suit your individual requirements. They are G.S.T inclusive. An approximate guideline is 2.2%, but this varies dependent on circumstances. Eg. Ease of making the sale versus difficulty and extended program to find a suitable buyer.

Marketing Charges
When selling your property will be advertised in realestate.com.au, reiwa.comdomain.com.au (primarily for east coast buyers), the Post Newspaper, and Gordon Davies Real Estate Website. We have a marketing schedule which we go through with you to decide what specifically you want to do. We will offer advice as to what will work best for your particular property.
Auctions more often involve higher costs and are rarely successful in Western Australia, although they are the norm on the east coast. Western Australia has the benefit of standard General Conditions of Sale which are revised every three years mand save people the cost of getting specific auction contracts drawn up, and enable you to make offers subject to various items such as:

  1. The sale of your house
  2. Getting finance approval
  3. Structural building report and timber pest inspections

Legal Costs
In both the sale and purchase of a property it is recommended that a legal representative (settlement agent or solicitor) carry out the conveyance of the property. (See standard conveyancing charges sheet from The Australian Institute of Conveyancing Western Australia).

White Ant Clearance Certificate
A White Ant Clearance Certificate is generally made a condition of purchase and is paid for by the buyer to ensure that the warranty stays with the buyer after settlement. Should treatment or repair work be necessary, the costs are borne by the seller.

Building Inspection
Many buyers pay a builder to do a significant defects report to make sure there are no surprise repairs or problems after settlement. This is also paid for by the buyer for the same reason above.

Sundry Expense
Provision should be made for removal charges, mail redirection charges and other sundry items.


Method of Sale and Marketing

There are a number of methods of sale choices to consider when planning on selling your property.

The  most common methods used in the Western Suburbs are Private Treaty, tender , set date sale, expression of interest and auctionCitizenship and Community Citizen.

We are happy to have an obligation-free discussion on methods of sale and marketing to help determine the best option for you and your property.

Private Treaty

This is by far, the most common sales method. Your property is advertised at a pre-determined price and then buyers are free to offer any price on any terms and conditions they like. After reviewing the offer(s), counter offers go back and forth until your property is sold, or put back onto the market.

It is important when selling by private treaty that, in consultation with us, we set a realistic figure for the asking price. In our experience, properties that are initially over-priced may suffer from over exposure if they are marketed for a long period of time at an unrealistic figure.

Properties that have a more realistic initial asking price are less likely to suffer from marketing staleness and our experience demonstrates that those properties usually achieve the best market price. BUT some houses are so unique they have limited appeal and patience is needed to find the right buyer at a sensible price.

The marketing expenditure is chosen by the owner and is in addition to the commission. It may include a colour brochure, photographs, signs, internet exposure, video tours and advertising.

Buyers usually expect to negotiate the price down unless they see it as good value to them.

With private treaty the date of sale and settlement are unknown and subject to negotiation, which gives greater flexibility to the buyer to satisfy conditions.

It is possible to sell a property subject to conditions such as finance approval and the sale of another property or on the basis that the seller finds another home for them to purchase.


Sale by auction utilises a set cost and marketing period with a predetermined deposit and settlement date. This format is very good for properties in high demand so that it can generate competition. In conjunction with you, a minimum sale price (the reserve) is established and the price is negotiated upwards, unless the reserve is above the current market price.

An auction campaign is usually held over a three to four week period with the auction being held on site on the fourth Saturday. Home opens are usually conducted for 30 to 40 minutes on Wednesdays and Saturdays.

Auction is a means of sale often favoured by vendors of properties with unique attributes that are in high demand because it allows the market to determine the fair maximum value.

An auction allows you to pre-determine your own date of sale and settlement. In the present market conditions we recommend the settlement date be 60 – 90 days after the fall of the hammer.

The sale is of an unconditional nature. The successful purchaser is usually required to pay 5% to 10% on the fall of the hammer and the balance at settlement. Bidding can not be conditional and there is a high probability of the contract proceeding successfully to settlement.

Auction will often allow vendors to obtain the highest market price by creating competitive tension between opposing bidders. Note that this is usually only in a lively market for properties in high demand.

Other Methods

A detailed contract of sale is prepared with some terms fixed & others flexible. A time and date is set for final submission. Usually for more complex sites. Different conditions can be further negotiated.

Where an expensive marketing campaign is worked out. A lot of money is spent on a huge sign, several full page advertisements and big lineage adverts. Expensive brochures and letterbox drops, plus entry on the most viewed real estate websites, as well as distribution of the electronic brochure to past possible buyers on our database.

More low-key, smaller signs, cheaper advertisements and brochures. They wish to spend less money and do not believe they will achieve a higher price by spending more and rely mostly on the internet to market their property.

Where a seller asks an agent to find a buyer without advertising, or marketing, because they do not want the general public knowing their house is on the market. Difficult but sometimes successful.

Similar to Tender or Auction, but the buyer is free to put any offer on any terms and conditions by a specified date. Not very different from expression of interest.

The property is advertised to past buyers or on the internet without address or home opens. Inspection by appointment only. For sellers who do not want neighbours or sticky beaks viewing.

No price is set. Sometimes an indicative price range is given. A final date to submit offers, on any basis, is set. The best offer by the date may, or may not, be accepted. Sometimes a very good offer comes in early and the owner sells at that price.