LISTING & SALES OPTIONS
A ‘listing agreement’, or ‘authority to sell’, gives an agent the ability to act on your behalf when selling your rural property. It’s usually the first document you’ll be asked to sign. Take the time to read through the agreement and ensure all your details and those of the property are correct. The agreement will outline the following aspects:
- name(s) of the official owners
- address of the property
- method of sale (see below)
- terms of sale
- commission structure
- marketing / advertising budget
- period of authority
Owners are also obliged to disclose any information about their rural property that may affect the buyer. This could be things such as:
- access to your property
- services connected to the property
- intensive farming practices during your ownership
- building approvals during your ownership
- planning restrictions
- council rates
Method of sale
In discussion with your agent, you’ll also need to decide on how your property will go to market. The most common way is by auction, which defined as ‘the sale of a property by a bidding process on a specified day’. Properties are generally given a reserve (minimum set price) and if no bids reach this reserve price then the property is considered ‘passed in’.
What are the top 5 advantages of sale by auction?
- The reserve price and settlement date are designed to suit the seller
- Potential buyers don’t know the reserve, allowing the seller to test the market
- The property can still be sold prior to auction if a buyer makes an offer
- The auction date creates a sense of urgency for buyers
- The auction itself is conducted under the seller’s terms and conditions
In consultation with your agent, you may also consider a private sale or treaty. Although less common than an auction, for some sellers a private sale can be a good fit. If urgency of sale isn’t as important, a private sale provides time for a seller to consider offers and negotiate a flexible settlement period.