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  • Profile photo of thefirstbrucethefirstbruce
    Member
    @thefirstbruce
    Join Date: 2003
    Post Count: 133

    What’s everyone’s opinion about private sales.
    Seems to me in a rising market a house sells itself, so why bother with agents.

    I want to buy, and have considered approaching owners of desireable properties to buy privately. But never done this before. I had also considered using the following spiel to bring to their attention the advantages of a private sale.

    Any opinions appreciated…………

    1. You save up to $8000 in real estate agent’s commission as per the following table of fees.

    sale price comm gst total comm
    150,000 4,200 420 4620
    200,000 5450 545 5995
    250,000 6700 670 7370

    2. You save on agent’s advertising costs, up to $2500.

    3. You don’t have the inconvenience of agent’s phone calls and open house inspections with multiple people traipsing through your home.

    4. You sell at a time convenient to you, as I am flexible on a settlement date.

    5. As I am not in a desperate hurry to move in, I am happy to purchase and rent back to you until you find somewhere else to buy. There are many benefits to this:

    – you don’t have the stress of rushing to sell your current home once you find another home you like.

    – you get extra time to choose a greater variety of homes coming onto the market.

    – you avoid the risk of penalty interest (~10%pa) if you don’t have cleared funds on settlement day for your new home. You also avoid the risk of losing your 10% deposit.

    – you avoid the risk of BRIDGING FINANCE, around $8000 for 3 months. Bridging finance is also only available if you have signficant equity in your current home.

    – you avoid the risk of having to rent elsewhere, around $3250 for 3 months, plus bond money of $1,500-2,000.

    6. You save time and money not having to improve your home and garden, or doing last minute renovations.

    7. You don’t have to pay for pre-sale pest inspections and building reports.

    8. You are in a stronger position to offer cash for your next home. This is a significant advantage when negotiating a sale price with the seller.

    9. The sale of your current house is just as safe as one by an agent, as we use experienced and reputable solicitors to tailor a transparent legal contract suitable to both of us.

    Bruce
    Mooloolaba, Qld

    Profile photo of MalPMalP
    Member
    @malp
    Join Date: 2003
    Post Count: 23

    The problem is that private sellers are selling privately in order to gain maximum profit, i.e. not have to pay agents commission etc. As a buyer, this puts you at a disadvantage, but usually sellers tend to over-price their properties and hence there is room to bargain.

    Profile photo of thefirstbrucethefirstbruce
    Member
    @thefirstbruce
    Join Date: 2003
    Post Count: 133

    I take your point, but the spin was that I am approaching people who hadn’t worked out all by themselves to sell privately. I agree those who advertise privately off their own bat, are savvy about maximum returns.

    Bruce
    Mooloolaba, Qld

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