Plum Property Blue Mountains Pre-Appraisal Information Kit

Plum
Property
B L U E M O U N T A I N S
Bringing a new, fresh and contemporary
approach to Real Estate in the Blue Mountains
MARKET APPRAISAL
INFORMATION
BOOKLET
Independent Agent
Local knowledge
Competitive Commission
Focus on customer service
Marketing tailored to you and your property
Claire Schmidt-Rees, Principal & Residential Sales Agent, Lic. No. 20045232
T/A Plum Property Blue Mountains, ABN: 60 490 135 279
Mobile: 0434 105 201 Email: claire@plumpropertybm.com.au
www.plumpropertybm.com.au

Claire Schmidt-Rees
Principal and Licensed Sales Agent
Claire’s Real Estate Experience
Born and raised in the Blue Mountains and living in Hazelbrook, Claire started her Real Estate career in
2012, since gaining experience within all aspects of the industry.
Claire established Plum Property Blue Mountains in July 2016 to bring a new and fresh approach to Real
Estate in the Mountains. Her local knowledge and strong passion for her industry is a true asset to both
existing residents who wish to sell their home, and those looking to move into the area.
Claire’s genuine interest in her clients, and her clear focus on customer service is reflected within the
diligence with which she follows up and communicates with her clients, ensuring that every sale experience
not only rewarding, but as stress-free as possible.
Claire firmly believes that the combination of her creative and contemporary marketing strategies, including
social media, will ensure that she achieves exceptional results in the sale of your most important financial
asset - your home.
Outside Real Estate
Claire has a very strong interest in animal welfare, and loves to travel! She has a black Labrador puppy,
Bella, who always keeps her on her toes, and a small terrier Buster, who she rescued in February 2016.
Contact Claire on 0434 105 201, or claire@plumpropertybm.com.au
www.plumpropertybm.com.au

Claire’s Testimonials
Vendor Testimonial:
“Our expectations were exceeded! Claire achieved a great sale price for our house in super-quick time.
Claire's professionalism was on display from our first contact. She guided us through the sale process,
acknowledging the emotional stages we were going through in selling our beautiful home of 17 years.
We appreciated Claire's flexibility including allowing us to contact her at times suitable to us - which
more than once was on a Sunday afternoon!
"Enthusiasm, energy and effort" are the three words which sum up our experience with Plum Property”.
Steve and Samantha, 19 Careya Crescent, Woodford
Purchaser Testimonial:
“As a buyer I found Claire to be honest in delivering a service to the buyer that was both professional but
more importantly with integrity. Claire was punctual in keeping appointments, treated the buyer with
respect and answered all questions posed by me in respect of the property. I would highly recommend
Claire to any buyer who is contemplating the huge decision of purchasing a property”.
N. Whiting, 19 Careya Crescent, Woodford
"My wife Lorraine and I have known Claire on a personal level and also on a professional level for around
3 years or so. When we heard that Claire was launching her new business Plum Property Blue Mountains
we couldn't have been more happy for her. She is a very determined and focused young lady with very
high values and principles.
Claire has a huge heart for people, so anyone wanting to entrust the sale of their property or wanting to
find and purchase their dream home could not go wrong contracting with Claire. She is very professional
when it comes to business and always operates her business with high integrity. We wish Claire every
success in the future and look forward to seeing Plum Property Blue Mountains go from strength to
strength. Congratulations Claire!"
Ian and Lorraine Brownlee, Katoomba
"Claire's professionalism, her motivation and drive and her passion for the real estate industry is obvious
when you talk to her. She is honest and gives her all to her customers. I would definitely put my property
in her hands".
Kylie Cooper, Blue Mountains
"Claire is an incredibly dedicated person, with a heart of gold, and will make your association with her an
experience to remember".
Peter Franklin, Glenbrook
www.plumpropertybm.com.au

The Sales Process
Using an Agent
A key to successfully selling your home is choosing the right agent. Before making your choice, it is
good practice to talk to at least three agents, making sure they each have a valid Licence (you can do
a Licence Check online on NSW Fair Trading Website).
When you sign up with an agent, you enter into a legally binding contract, called an Agency Agreement.
In this kit, I have provided you with the Fact Sheet ‘Agency agreements for the sale of residential
property’ from NSW Fair Trading, which gives you more detailed information explaining the sign up
process, what information is contained within an agency agreement, disclosure, ending the agreement,
the types of agency agreements that are available, and where to seek assistance should you need it.
Listing Your Property
Legally, a residential property cannot be advertised for sale until a Contract of Sale has been prepared by
your legal representative. The Contract must contain a copy of the title documents, drainage diagram
and a current Zoning Certificate (s149) issued by the Blue Mountains Council.
Property’s with Swimming Pools - If your property has a swimming pool or spa, either a copy of a
certificate of compliance or an occupation certificate (issued in the past 3 years) and evidence that the
pool has been registered; or a valid certificate of non-compliance must be attached to the Contract. If
one of these documents fails to be attached to the Contract, the purchaser may be entitled to rescind the
sales contract within 14 days of exchange, unless settlement has already occurred. For more
information, talk with your legal representative, or visit the NSW Swimming Pool Register website.
Property exclusions must also be included and a statement of the buyer’s cooling-off rights must be
attached. The draft contract must be available for inspection at the agent’s office. It is important that
you consult your solicitor or conveyancer about preparing the contract to make sure that everything is in
order.
Contracts, Deposits & Exchange
Exchanging Contracts of Sale is the legal part of selling your home. There will be two copies of the
Contract of Sale - one for you and one for the buyer/s. You each sign one copy before they are swapped
(exchanged). This can be done either by hand or post and is usually arranged by either your legal
representative or your agent. At the time of the Exchange, the buyer is required to pay a deposit, usually
10% of the purchase price (unless negotiated otherwise).
The Contract Exchange is the most critical point in the sale process as both the buyer and seller are not
legally bound until signed copies of the Contract are Exchanged. It is important to remember that buyers
of residential property usually have a cooling off period of five working days following the Exchange of
Contracts during which they can withdraw from the sale - this cooling off period can be waived, reduced
or extended by negotiation. However, there is no cooling off period for sellers. Once contracts have been
exchanged, sellers are generally bound to complete the agreement.
Also, if the agent arranges exchange of contacts, they must give copies of the signed contract to each
party or their legal representative within 2 business days.
Settlement
Settlement is the conclusion of the sale transaction and usually takes place 42 days (six weeks) after
Contracts are exchanged. This is the time when the keys are handed over officially to the purchaser.
www.plumpropertybm.com.au

Buyer Behaviour
The Four Buyer Types
Plum Property markets your property to attract all four buyer types, and find buyers who fall in love with
your property, offering an “emotional”, and the best possible price.
A buyer who lives, eats
and shops locally.
Their world revolves
around the local
Blue Mountains
community.
LOCAL
BUYER
OUT OF
AREA BUYER
A buyer who lives outside the
Blue Mountains, either in
Sydney, another city or
state, or possibly
even living overseas.
A buyer who is not
actively looking in
the market. They are
not registered on any
portals or databases,
but may see your property
signboard, letterbox drops
or editorial.
PASSIVE
BUYER
ACTIVE
BUYER
This is the easiest
buyer to attract, but
not always the best
buyer. They are
thoroughly researched.
They tend to over analyse
and underact.
The Three Price Brackets
A buyer who feels that they must own
the property, paying a high figure based
on emotional connection. They then EMOTIONAL
justify their decision logically.
PROBABLE
A well-researched buyer buying a
property they like based on a
large number of comparisons.
A savvy buyer,
possibly an investor,
who buys purely
on numbers.
BARGAIN HUNTER
Plum Property’s Marketing attracts, engages and connects all four buyer types to
your property, and greatly assists us in achieving an emotional price.
www.plumpropertybm.com.au

Plum Marketing
Professional Photography and Floorplans
Professional photography is a must when selling your home, as listings with professional photography
sell 50% faster than those without, and are viewed 118% more than comparable listings. Our local
photographer knows how to position your property in its best light to engage more prospective
purchasers. Floorplans are also an excellent reference for purchasers. Source: www.realtor.com
realestate.com.au and domain.com.au
Over 5 million people visit realestate.com.au each month, and over 4 million people visit domain.com.au
each month when searching for property. Plum Property drives buyer enquiry with ‘Highlight Property
Advertisements’, capturing up to 7 times more views than a Standard Ad.
Property Photo Montage Video
Real Estate Listings that involve a property video received 4 times as many enquiries than those without,
and help buyers create an emotional connection to your home, before even stepping through the front
door! Claire personally creates a personalised video for your property, which are displayed on
realestate.com.au, domain.com.au, Plum Property’s YouTube Account and Social Media.
Commission Rate
As Plum Property is an independent agent, with much lower overheads than other local agencies, Claire
is able to offer their clients a competitive commission rate. See the ‘Schedule of Fees’ chart attached for
a detailed comparison.
Plum Property Buyer Booklet
95% of Blue Mountains Real Estate Agencies use a standard pre-designed, click-of-a-button order
brochure for your property that are displayed at Open Houses for prospective purchasers. However Plum
Property’s customised ‘Buyer Booklet’, we detail your property’s photographs, floorplan and information
about your home, as well as a Suburb Profile, Property Map Location (especially useful for out-of-area
buyers, and a reference point for local buyers and “What we love about our home” - a brief description
from you, the owner/s.
www.plumpropertybm.com.au

Plum Marketing
Plum Property Signboards
Our signboards are eye-catching and distinctive. They are the perfect way to advertise your property 24
hours a day, catching the eye of prospective purchasers, as well as friends and family in the area that
may be looking to buy themselves, or know of someone who is.
Print Media and Editorials
Print Media captures passive buyers, as well as locals who are either searching for a property, or know
someone who is. The Property Showcase Magazine for the Blue Mountains and Central West is
published monthly, and distributed throughout every Real Estate Agency in the region. As well as this,
subject to availability, Plum Property is also able to secure you a complimentary Property Editorial in the
local Blue Mountains Gazette Real Estate Section.
Open Homes and/or Private Inspections
Open Homes are a fantastic way to attract a huge amount of interest to your home. At Plum Property, I
hold my Open Homes for one hour, rather than other agents who conduct 30 minute Open Homes. This
allows prospective purchasers plenty of time to inspect your property, and view your property after other
Open Homes, as half-hour slots are often double booked with other agents / property inspections.
Of course, many sellers often feel that Open Homes are too intrusive and often very overwhelming for
them, so I am also happy to conduct private inspections by appointment only at times that suit you.
Plum Property Website and Buyer Database
Your property will also be listed for sale on our own Plum Property website. Once listed, your home will
also be sent directly to our exclusive buyer database, all pre-qualified buyers who have either missed out
on other properties that have sold, or are searching for a property just like yours! Even though we push
your property to our exclusive buyers, it is still very important to advertise your property online in the
best possible light to attract the most potential buyers through your home; this will ensure we achieve
the best possible price for you in the current market.
Plum Property’s Social Media
Did you know that over 15 million Australians, over 62.5% of Australia’s population, have a Facebook
Account? Plum Property have well and truly embraced technology, always looking for better ways to
reach out to interested buyers and making sure that they are first to know about your property coming
onto the market. We actively use Facebook, LinkedIn, Instagram and YouTube to promote your property!
www.plumpropertybm.com.au

Buyer Behaviour
Source: Residential Consumer Omnibus, March 2015
Respondents looking to buy residential property.
94%
52% 71%
86%
90%
of buyers ignore
properties that
don’t disclose
a price.
of buyers are
frustrated when a
listing has poor
quality photos.
of buyers are
frustrated when an
address isn’t
provided.
of potential buyers
search online
when looking for
property.
of success in
any property
campaign is
marketing.
PLUM PROPERTY’S MARKETNG OPTIONS (TAILORED TO YOUR PROPERTY)
PROFESSIONAL PHOTOGRAPHY
Professional Photography & Floorplan Package (inc. 12 photos) $265.00
Professional Photography Only, inc. 12 Photos (No Floorplan) $185.00
Additional Images $12/ea Additional Secondary Floor-Plan (Large Home) $15.00
ONLINE ADVERTISING
Realestate.com.au ‘Highlight’ Property Listing - 30 days
Bullaburra, Hazelbrook, Lawson, Linden, Wentworth Falls, Woodford $587.00
Faulconbridge, Blaxland, Glenbrook, Springwood, Winmalee $695.00
Domain.com.au ‘Premium’ Listing (28 days), to ‘Priority’ Listing (14 days) to a Standard
Vacant Land $0.00 Unit/Townhouse - $253.00 House $313.50
COMPLIMENTARY ADVERTISING
Listing on Plumpropertybm.com.au
Photo Montage Video, for YouTube, Social Media, realestate.com.au & domain.com.au
Social Media and Buyer Database Advertising, including Facebook and Instagram
Plum Property ‘Home For Sale’ Signboard 3 x 4 ft.
Blue Mountains Gazette Property Editorial (Subject to Availability)
Property Showcase Magazine Property Advertisement (Subject to Availability)
‘Just Listed’ Brochures, ‘Open House Booklets’ and Letterbox Drops
FREE
FREE
FREE
FREE
FREE
FREE
FREE
INSPECTIONS
Open Homes
Private Inspections by Appointment Only
(All Prices Include GST) - Total Marketing:
www.plumpropertybm.com.au

The Plum Difference
Claire’s attention to detail stands your property apart from
the houses listed in competition with yours!
www.plumpropertybm.com.au

Frequently Asked
Questions
Who determines Real Estate Prices?
Appraisals of property value can vary tremendously. Overpricing is the easiest way to kill a sale.
You should be wary of agents who tell you that they can obtain a much higher figure, knowing that this
will secure your listing. Generally, over time, these agents will suggest a substantial drop in price for
your property. Remember, agents may interpret the market, but they do not create it. It is also important
to remember that many purchasers rely on a valuation of your property in order to gain final finance
approval. If the valuer determines that the purchase price negotiated does not reflect a realistic market
opinion, the purchaser may not be able to proceed.
Plum Property Blue Mountains is committed to pricing properties at a realistic and achievable price.
Our effective marketing strategy, high attention to detail, and always following through are the keys to
ensuring we get the best possible price for your property.
Which method of sale is best for my property?
There are two main methods of selling residential property - Private Treaty or Auction. It is my
recommendation that your property be offered for sale by Private Treaty, the most traditional way of
selling. We simply set a price for which your property is listed for sale, allowing you, as the seller, to
have greater control over the sale and negotiations, and also allowing you the time to consider all offers
by potential purchasers. Many buyers often find this method of sale less intimidating, so your property
generally will attract more buyers.
Why is the first offer often the best offer?
Buyers today are very savvy, and are often very active in the marketplace, looking at dozens of
properties before viewing your home. They wait for new properties to become available, and if one suits
them, they will make an offer based on the sale prices of other properties in the area. Most buyers have
been looking for a while, and have missed out on other suitable properties, so this is why they act so
swiftly and generally make such strong offers!
Should I buy or sell first?
“Out with the old, in with the new”, but which comes first? It’s never an easy call. By selling first, you are
able to wait until you get your desired price with no pressure, and have as much time as you would like.
But, if your home sells faster than you thought, you could face the stress of having to move out while
you look for your new home. Buying first means you can spend plenty of time looking for your next
home, instead of feeling pressured to take the first offer you receive. However, it also means you can’t
determine an exact budget for your new home, and/or you may not get as much as you had hoped for
your existing property, so you will have to make up the difference with either your savings, a larger loan
or you may even need to consider Bridging Finance.
Should I use an agent, or sell it myself?
Selling your property is one of the biggest financial decisions you’ll ever make, so getting a professional
to help you is probably a smart move. You can leave the hard work to them, and you will also have the
legal protection of using an agent. Selling your home privately may also limit your advertising reach, as
major listing portals, such as realestate.com.au only accept professional listings from Real Estate
agents, and private sale listing websites don’t attract nearly as much traffic.
www.plumpropertybm.com.au

Frequently Asked
Questions
How is Plum Property Blue Mountains different?
Claire established Plum Property Blue Mountains with the idea of bringing a new and fresh approach to
Real Estate in the area. She prides herself on her very honest and straightforward approach and advice.
With experience within all aspects of the Real Estate industry, and a strong passion for the industry,
Claire has a clear focus on customer service, ensuring she always following up and communicates
effectively with her clients, striving to make every sale experience not only rewarding, but as stress free
as possible for all parties involved. Claire firmly believes that the combination of her creative and
thorough marketing strategies and genuine interest in her clients will be the key to ensuring that
Plum Property Blue Mountains will deliver exceptional results for you.
Do I need my property displayed in a Real Estate window?
No, not at all. In fact, at Plum Property Blue Mountains, we do not have a Window Display in which to
display properties for one simple reason- over 86% of potential buyers using online as their main tool
when searching for property, with online traffic growing an additional 20% year-on-year on
realestate.com.au alone. Less than 1% of total enquiries come from someone seeing your property in a
window display, and even then, this enquiry may just be from a nosey neighbour, not a qualified buyer.
Can I sell my property while it is currently leased?
Yes, you are able to sell your property while it is being leased. All prospective purchasers must be told
there is a current lease in place, and therefore the property will not be sold with Vacant Possession.
Your tenant has the right to occupy the residence until the end of their agreed lease term, however both
parties can negotiate and agree to terminate the existing agreement if desired, and therefore, the
property can be sold with Vacant Possession. However, you need to remember that in some cases, the
fact your property has reliable tenants in place may actually be appealing to prospective investors.
What costs are involved in selling my home?
Before selling your home, it is important to understand the costs that may be involved throughout the
process. Below is a brief outline of the costs that you may encounter whilst selling your home -
remember, this is purely a guide, and you should take into account your own personal circumstances.
• Legal Representative Costs - your solicitor or conveyancer should be able to provide you with a
complete schedule of fees that may be incurred throughout the process.
• Agent Fees - most Blue Mountains agents charge a commission fee, usually a percentage of the final
sale price of your home, as well as investing in initial advertising costs. This can vary between
agents but remember, as discussed on the previous page - the cheapest agent isn’t always the best!
• Moving Costs - you will have to factor in the cost of actually moving home. Even if you choose not
to hire a professional removalist, you will need to consider your general moving expenses, including
truck hire (if applicable), fees and charges of having your utilities connected and disconnected, your
time, as well as cleaning your home prior to settlement.
I’ve decided to sell - what now?
You need to sign an Agency Agreement with your chosen Real Estate agent, authorising the agent to
sell your property. You also need to request your legal representative to draw up a Contract of Sale for
your property - this is sent to your Agent to allow them to begin marketing your property for sale.
www.plumpropertybm.com.au

Comparable Woodford Sales with Other Agents:
41 Leumeah Rd (3 bed, 1 bath, 1 car, 698sqm)
Sold for $559,000
25 Leumeah Rd (3 bed, 1 bath, 1 car, 696sqm)
Listed for $499,000 to $539,000
82 Leumeah Rd (3 bed, 1 bath, 2 car, 776sqm)
Sold for $540,000
www.plumpropertybm.com.au
Recent Sale
19 Careya Crescent
WOODFORD
SALE DETAILS:
Sold for: $600,000.00
Marketing Investment: $1,085.50
Buyer Source: realestate.com.au
Buyer Origin: Faulconbridge, NSW
Days on Market: 4 (Listing to Offer)
Agent Average (Woodford): 72 days

www.plumpropertybm.com.au
Recent Sale
12 Birdwood Parade
HAZELBROOK
SALE DETAILS:
Listed Price :$440,000.00
Marketing Investment: $772.00
Buyer Source: realestate.com.au
Buyer Origin: Springwood, NSW
Total Internet Views: 14,205

Schedule of Commission Percentages
Plum
Property’s
Commission
Rate
Other Agents/Agencies
Commission Rates
2% 2.2% 2.5% 2.75% 2.97% 3% 3.3%
$200,000 $4,000.00 $4,400.00 $5,000.00 $5,500.00 $5,940.00 $6,000.00 $6,600.00
$225,000 $4,500.00 $4,950.00 $5,625.00 $6,187.50 $6,682.50 $6,750.00 $7,425.00
$250,000 $5,000.00 $5,500.00 $6,250.00 $6,875.00 $7,425.00 $7,500.00 $8,250.00
$275,000 $5,500.00 $6,050.00 $6,875.00 $7,562.50 $8,167.50 $8,250.00 $9,075.00
$300,000 $6,000.00 $6,600.00 $7,500.00 $8,250.00 $8,910.00 $9,000.00 $9,900.00
$325,000 $6,500.00 $7,150.00 $8,125.00 $8,937.50 $9,652.50 $9,750.00 $10,725.00
$350,000 $7,000.00 $7,700.00 $8,750.00 $9,625.00 $10,395.00 $10,500.00 $11,550.00
$375,000 $7,500.00 $8,250.00 $9,375.00 $10,312.50 $11,137.50 $11,250.00 $12,375.00
$400,000 $8,000.00 $8,800.00 $10,000.00 $11,000.00 $11,880.00 $12,000.00 $13,200.00
$425,000 $8,500.00 $9,350.00 $10,625.00 $11,687.50 $12,622.50 $12,750.00 $14,025.00
$450,000 $9,000.00 $9,900.00 $11,250.00 $12,375.00 $13,365.00 $13,500.00 $14,850.00
$475,000 $9,500.00 $10,450.00 $11,875.00 $13,062.50 $14,107.50 $14,250.00 $15,675.00
$500,000 $10,000.00 $11,000.00 $12,500.00 $13,750.00 $14,850.00 $15,000.00 $16,500.00
$525,000 $10,500.00 $11,550.00 $13,125.00 $14,437.50 $15,592.50 $15,750.00 $17,325.00
$550,000 $11,000.00 $12,100.00 $13,750.00 $15,125.00 $16,335.00 $16,500.00 $18,150.00
$575,000 $11,500.00 $12,650.00 $14,375.00 $15,812.50 $17,077.50 $17,250.00 $18,975.00
$600,000 $12,000.00 $13,200.00 $15,000.00 $16,500.00 $17,820.00 $18,000.00 $19,800.00
$625,000 $12,500.00 $13,750.00 $15,625.00 $17,187.50 $18,562.50 $18,750.00 $20,625.00
$650,000 $13,000.00 $14,300.00 $16,250.00 $17,875.00 $19,305.00 $19,500.00 $21,450.00
$675,000 $13,500.00 $14,850.00 $16,875.00 $18,562.50 $20,047.50 $20,250.00 $22,275.00
$700,000 $14,000.00 $15,400.00 $17,500.00 $19,250.00 $20,790.00 $21,000.00 $23,100.00
$725,000 $14,500.00 $15,950.00 $18,125.00 $19,937.50 $21,532.50 $21,750.00 $23,925.00
$750,000 $15,000.00 $16,500.00 $18,750.00 $20,625.00 $22,275.00 $22,500.00 $24,750.00
$775,000 $15,500.00 $17,050.00 $19,375.00 $21,312.50 $23,017.50 $23,250.00 $25,575.00
$800,000 $16,000.00 $17,600.00 $20,000.00 $22,000.00 $23,760.00 $24,000.00 $26,400.00
$825,000 $16,500.00 $18,150.00 $20,625.00 $22,687.50 $24,502.50 $24,750.00 $27,225.00
$850,000 $17,000.00 $18,700.00 $21,250.00 $23,375.00 $25,245.00 $25,500.00 $28,050.00
$875,000 $17,500.00 $19,250.00 $21,875.00 $24,062.50 $25,987.50 $26,250.00 $28,875.00
$900,000 $18,000.00 $19,800.00 $22,500.00 $24,750.00 $26,730.00 $27,000.00 $29,700.00
$925,000 $18,500.00 $20,350.00 $23,125.00 $25,437.50 $27,472.50 $27,750.00 $30,525.00
$950,000 $19,000.00 $20,900.00 $23,750.00 $26,125.00 $28,215.00 $28,500.00 $31,350.00
$975,000 $19,500.00 $21,450.00 $24,375.00 $26,812.50 $28,957.50 $29,250.00 $32,175.00
$1,000,000 $20,000.00 $22,000.00 $25,000.00 $27,500.00 $29,700.00 $30,000.00 $33,000.00
$1,050,000 $21,000.00 $23,100.00 $26,250.00 $28,875.00 $31,185.00 $31,500.00 $34,650.00
$1,100,000 $22,000.00 $24,200.00 $27,500.00 $30,250.00 $32,670.00 $33,000.00 $36,300.00
$1,150,000 $23,000.00 $25,300.00 $28,750.00 $31,625.00 $34,155.00 $34,500.00 $37,950.00
$1,200,000 $24,000.00 $26,400.00 $30,000.00 $33,000.00 $35,640.00 $36,000.00 $39,600.00
$1,250,000 $25,000.00 $27,500.00 $31,250.00 $34,375.00 $37,125.00 $37,500.00 $41,250.00
$1,300,000 $26,000.00 $28,600.00 $32,500.00 $35,750.00 $38,610.00 $39,000.00 $42,900.00
Claire Schmidt-Rees T/A Plum Property Blue Mountains, ABN: 60 490 135 279, Individual Licence Number: 20045232
Postal Address: PO Box 120, Hazelbrook NSW 2779 Mobile: 0434 105 201 Email: claire@plumpropertybm.com.au
www.plumpropertybm.com.au

February 2010
FTR32
Agency agreements
for the sale of residential property
Selling a home is something many people do only once
or twice in a lifetime, so it pays to do some homework
before signing up with an agent to sell your property for
you.
When you sign up with an agent, you enter into a legally
binding contract. This fact sheet explains what your rights
and responsibilities are under that contract.
You have a cooling–off period of 1 day starting from
when you sign the agreement. You can cancel the
agreement in this time if you are not happy with it (more
information over the page).
Choosing a real estate agent
To sell a home in New South Wales, an agent must have
a real estate agent’s licence issued by NSW Fair Trading.
You should check the licence details of all agents you are
thinking of using before signing up with your preferred
choice. You can do a licence check online through the
Fair Trading website or by calling 13 32 20.
To find the right agent for your needs, you should shop
around. If possible, get the names of one or two agents
from other home owners in your area who have recently
sold. We suggest you talk to at least three agents and:
●
●
●
●
make sure they have a valid licence
get a list of all their fees
find out if they have a good knowledge of your area
ask if they adhere to a code of ethics.
Signing up with an agent
Before the agent can market your property, they must
sign a contract with you, called an ‘agency agreement’.
An agency agreement is a legally binding contract and it
is important that you read and understand it.
If you are not sure about the agreement terms you
should get legal advice.
Signing an agency agreement means that you authorise
an agent to do certain things for you in relation to the
sale of your property, such as arranging advertising and
inspections and receiving deposits from buyers. The
agreement must specify what the agent is authorised to
do for you and must state all commissions and any other
costs you may be liable to pay.
What is in the agency agreement
The agency agreement must state:
●
●
●
●
●
●
●
the services the agent will provide for you
the amounts of any fees or commission you agree to
pay for those services
the circumstances in which the agent is entitled
to payment – for example, commission is usually
payable only when the property is sold
how and when payment is to be made – for example,
whether the agent can deduct their commission from
the deposit money paid by the buyer
warnings about circumstances in which you might
have to pay commission to more than one agent (see
information on page 2 about the different types of
agency agreement)
the extent of the agent’s authority to act for you – for
example, whether the agent is permitted to exchange
a sale contract on your behalf or make changes to
the sale contract
the agent’s estimated selling price or price range for
the property.
You have the right to negotiate with the agent about the
terms and conditions of the agreement and to ask for any
legally permitted changes to be made. Alterations made
to the agreement need to be signed by all parties.
Commission, fees and expenses
The amounts charged by agents are not set by law. You
can negotiate with the agent about the amounts of any
commissions, fees or other expenses that you may be
required to pay. Before signing an agreement, it is a good
idea to talk to a few agents and compare their prices. Ask
www.fairtrading.nsw.gov.au

February 2010
FTR32
each agent for a printed list of their fees and commission
rates and the expenses they charge.
Disclosure of rebates and discounts
The agency agreement may require you to pay the
agent for certain expenses in relation to the sale of your
home, such as advertising, auctioneer’s fee, or any
other services the agent may arrange for you, such as
cleaning, decorating or landscaping.
Sometimes the amount the agent has to pay for the
service is less than what you are being asked to pay.
This can occur if the agent receives a commission or
discount from the provider of the service for being a
regular customer – for example, some newspapers pay
a commission to the agency at the end of the year based
on how much advertising was placed.
The agency agreement must state the amounts or
estimated amounts of any such commissions or
discounts and from whom they are received. You can
negotiate with the agent about whether you should pay
the full amount.
Ending the agreement
The agency agreement usually has a specified period
(a ‘fixed term’) during which the agreement cannot
be ended unless you and the agent both agree. If the
agreement is open ended (that is, it does not have a
fixed term) it must state how the agreement can be
ended.
The length of any fixed term is negotiated between you
and the agent, there is no minimum or maximum set
term. The fixed term will depend on how long you and the
agent think it will take to sell the property.
If the fixed term is longer than 90 days, you can give
the agent 30 days written notice to end the agreement
after 90 days. Of course, if the fixed term has less than
30 days left to run, you can just give notice to end the
agreement at the end of the fixed term – check your
agreement to see how much notice you need to give. If
you are not sure how to end the agreement, you should
seek legal advice.
If you are not happy with an agent’s services, it is
important to properly end your agreement with them
before signing up with another agent. Otherwise both
agents may charge you commission when the property is
sold.
Types of agency agreements
There are several different kinds of agency agreements
for the sale of residential property. It is important to be
aware of the kind of agreement you sign, because it
affects your rights and the amount of commission you
may have to pay. You should discuss the agreement
with a legal adviser if you are not sure about your rights.
The following is an overview of the different types of
agreements.
Exclusive agency agreements
Exclusive agency agreements are commonly used for the
sale of residential property. In this kind of agreement, you
give exclusive rights to one agent to sell your property.
This may entitle the agent to be paid commission if the
property is sold during the fixed term of the agreement,
even if the property is sold by you or by another agent.
The agent may also be entitled to commission if the
property later sells to a person who started negotiating
for the property with the original agent.
Sole agency agreements
This is similar to an exclusive agency agreement. You
give rights to one agent to sell the property but you may
find a buyer yourself. If you find a buyer who has not
been introduced by the agent, then no commission is
payable to the agent.
General listing / Open agency agreement
This lets you list your property with a number of agents.
You pay a commission to the agent who finds the buyer.
Multiple listing
This occurs when you deal with an agent who is part
of a network of agents working together to sell your
home. It covers both auction and private treaty. You pay
a commission to the agent you signed up with.
www.fairtrading.nsw.gov.au

February 2010
FTR32
Auction agency agreement
This is effectively an exclusive agency agreement where
the property is listed for auction.
Cooling–off period
The agency agreement becomes binding when the
principal (that is, you as the owner/s of the property, or
someone who is legally acting for you) and the agent
have signed it. There is then a cooling–off period of 1
business day during which you can cancel (or ‘rescind’)
the agreement. Saturday is included for the purposes of
the cooling–off period, but public holidays are not.
The cooling–off period starts when you sign the
agreement and ends at 5pm on the next business day or
Saturday. For example, if you sign the agreement on a
Friday, the cooling‐off period ends at 5pm on Saturday.
If you sign up on Saturday, the cooling–off period would
usually end at 5pm on Monday, unless that is a public
holiday, in which case it will end at 5pm on Tuesday.
The cooling–off period gives you time to read the
agreement, consider the terms you have agreed to,
including the agent’s fees, and get independent advice if
you have concerns about any aspect of the agreement.
Talk to the agent – they may be willing to change things
in the agreement that you are not happy about.
Cancelling the agreement during the cooling–
off period
If you decide to cancel (or ‘rescind’) the agreement
during the cooling–off period, you need to deliver a
‘notice of rescission’ to the agent.
This simply means giving the agent a written notice or
letter which:
●
●
●
is addressed to the agent (use their name as given in
the agency agreement),
states that you are rescinding the agreement, and
is signed by you (and any other person named on the
agreement as a principal) or by your solicitor/s.
as given in the agency agreement, or fax it to the agent.
Make sure to keep a copy for your records.
The agent cannot charge you any fees or costs in
relation to an agreement that has been rescinded
correctly. Any money you have already paid to the agent
must be refunded to you.
Waiving your cooling–off rights
If you are sure that you wish to go ahead with the agency
agreement, you can waive, or forego, your right to a
cooling–off period by signing a separate waiver form
when you sign the agreement.
The cooling–off period can be waived only if the agent
gave you the following documents at least 1 business
day before you signed the agency agreement:
●
●
a copy of the proposed (unsigned) agency
agreement, and
a copy of this fact sheet.
For example, on Thursday morning the agent gives
you a copy of the unsigned agreement and this fact
sheet, which you read and consider carefully. On Friday
afternoon you sign the agency agreement and the waiver
form. The agency agreement immediately becomes
binding and the agent can get to work on selling your
home.
The Contract of Sale
A residential property cannot be advertised for sale until
a Contract of Sale has been prepared. The contract
must contain a copy of the title documents, drainage
diagram and the Zoning Certificate (s 149) issued by the
local council. Property exclusions must also be included
and a statement of the buyer’s cooling off rights must
be attached. The draft contract must be available for
inspection at the agent’s office. It is important that you
consult your solicitor or conveyancer about preparing the
contract to make sure that everything is in order.
You can hand the notice to the agent in person, deliver it
to or leave it at the agent’s office or the agent’s address
www.fairtrading.nsw.gov.au

February 2010
FTR32
Exchange of contracts
The contract exchange is a critical point in the sale
process:
●
●
●
●
●
●
The buyer or seller is not legally bound until signed
copies of the contract are exchanged.
Buyers of residential property usually have a
cooling–off period of 5 working days following
the exchange of contracts during which they can
withdraw from the sale.
If the agent arranges exchange of contracts, the
agent must give copies of the signed contract to
each party or their solicitor or conveyancer within 2
business days.
The cooling–off period can be waived, reduced or
extended by negotiation.
There is no cooling–off period for sellers. Once
contracts have been exchanged, sellers are
generally bound to complete the agreement.
There is no cooling–off period when purchasing at
auction.
If you encounter problems
If an issue arises during the sale process that you are
unhappy with, check your copy of the selling agency
agreement to clarify your rights and obligations.
●
●
●
You can also seek legal advice from a solicitor or the
Chamber Magistrate at your nearest Local Court.
If your complaint concerns your solicitor, you can
lodge a complaint with the Office of the Legal
Services Commissioner.
If your complaint concerns your conveyancer, you
can lodge a complaint with NSW Fair Trading.
More information
NSW Fair Trading can give you more information about
the laws applying to property sales and agents. Contact
Fair Trading on 13 32 20 or visit the Fair Trading website.
Try to sort out the problem by talking to the agent.
Make certain that any instructions you give the agent
are in writing, and keep a copy. If you think the agent
has charged a fee to which they are not entitled, or
believe the fee charged is excessive, you can apply to
the Consumer, Trader and Tenancy Tribunal to settle the
matter.
Other tips
If you need further assistance to resolve a problem,
consider the following:
●
If your agent is a member of a professional
association, contact that association. They can be
helpful in resolving disputes.
www.fairtrading.nsw.gov.au
Fair Trading enquiries 13 32 20
TTY 1300 723 404
Language assistance 13 14 50
This fact sheet must not be relied
on as legal advice. For more
information about this topic, refer to
the appropriate legislation.
© State of New South Wales through NSW Fair Trading
You may freely copy, distribute, display or download this information with
some important restrictions. See NSW Fair Trading's copyright policy at
www.fairtrading.nsw.gov.au or email publications@services.nsw.gov.au
www.fairtrading.nsw.gov.au