When property owners make the decision to sell their real estate holding their reasons for taking this step will not all be the same. Some may need to free up cash, some may be moving interstate or downsizing, and some want to pursue other investment opportunities. While there are many reasons, the one thing they all want is the highest price possible in the market at the time.
Is It Legal to Sell your Home Privately?
Sellers pay legal fees, advertising costs and selling agent’s commission. Some sellers look to avoid this commission by selling their property privately. This process is legal, although the method can differ from state to state. If you are contemplating this move, check first with your state regulator.
The Selling Process in Brief
In Western Australia, for example, your contract of sale should be drawn up by a solicitor or conveyance before advertising the property. Be careful when setting a sale price as there are potential illegalities involved. Obtain a valuation from an independent property valuer, a real estate agent or an online selling source. Note that there is a difference between valuation and appraisal.
You must then be available for property inspections from prospective buyers. If you accept an offer in the approved format, and take a deposit, this must be held in a solicitor’s trust account. Settlement is the final step. The date is usually 30 to 60 days from the date of exchange of contracts. The balance of the money is paid and the documentation made available to the purchaser or the solicitor.
The process may sound relatively simple. However, we know from experience that things can go wrong at any time. Our Bunbury Real Estate sales agents have dealt with buyers who are shown properties with all the attributes they request but decide they don’t want these things after all. We have also seen buyers who book in for inspections then fail to attend. There are also buyers who arrange to buy a certain property, then change their minds at the last minute.
What Do Sales Agents Actually Do?
Sales agents carefully screen buyers to eliminate those who are not genuine. They keep their clients informed on both queries and physical inspections. More importantly, sales agents know market conditions in their local area. They really show their skills when negotiating the selling price and sale conditions between the seller and the buyer.
The Crucial Last Step
This is the most important part of the process for sellers who want the best price and settlement conditions for their property. To lose the sale now through inexperience is a waste of effort for someone selling a property privately, and it is where the sales agents earn every cent of their commission.