Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.
Private sale is where have to negotiate with the vendor’s agent (the Real Estate Agent) and arrive at an acceptable price to both parties, resulting in a contract of sale being signed.
✓Ability to add clauses to the purchase contract e.g.
- subject to finance approval
- subject to pest and/or building inspection
- subject to strata title inspection etc
✓A cooling off period may apply (depending on the State and Purchase price)
✓No public pressure of bidding in front of a crowd.
✓Time to consider your offer before submitting to the agent.
✓You don’t know what the competing offers are (or even if there are actually any).
Things to consider
Do your homework. Make sure you have followed the market for 2-3 months. Look at dozens of properties and follow up to find out how much they have sold for. Monday mornings, see if you can find the sale price on the internet, if not, call the Real Estate Agency to find out the sale price. This will give you fantastic knowledge and a great base to start negotiating confidently.
Always have your conveyancer review the sales contract prior to making an offer or bid. The Real Estate agent will be able to email you a copy that you can forward directly to your conveyancer.
It is important to set your limit and stick to it. Work out in advance what the highest price is that you are willing to pay, and use this as the point at which you will walk away from the negotiation and move on to find another property.
Starting negotiations with a LOW offer – you may run the risk of not being taken seriously and opening up negotiations in a negative manner. You may find that Real Estate Agents won’t even follow you up if it is too low.
On the flip side, if you starting negotiations with a HIGH offer, and if it is accepted straight away, it may leave you with a cheated feeling, often referred to as “buyers remorse”.
Before you start negotiating on a specific property, talk to the neighbours and chat about the house, the street and the area. Ask them why the vendor is selling (rather than the agent). Vendors selling under pressure due to changes in personal circumstances may be more likely to want a quick sale (e.g. purchased a new home, divorce, moving interstate etc). Or, if they haven’t yet found a new place to live, they may want a long settlement period.
Find out how long the property has been on the market. The longer on the market, may mean that the vendor continues to incur advertising and holding costs, which means that you may be able to negotiate a lower price.
Don’t ask the Real Estate Agent what price is expected, as they are agents for the vendor, and their job is to get the highest sale price.
Use all the resources available to you, including Real Estate sales data reports to find out how much other comparable properties in the area have sold for:
A free service we offer our valued EquityVision customers is a complimentary Property Value Report to help you assess the worth of a property.
This report provides a detailed electronic assessment of the value of the property of interest.
As well as this, the report will also cover:
✓ On the Market Price History
✓ Recent property sales in your suburb
✓Comparable Houses on the market
✓Comparable Houses advertised for Rent
✓Market Snapshot for your postcode
✓ Market Price Trends for your postcode
If you or any of your friends would benefit from our services or like a complimentary report on another property, please get in touch.