Private property sales require prospective buyers to make offers on the home after it has been advertised. Buyers and sellers may negotiate and agree on a final selling price, usually with the assistance of a real estate agent. Property sales require careful consideration and meticulous planning to get the best possible price for the home you're about to buy. Here are some considerations when buying properties through private sales.
Most buyers generally negotiate with sellers to make the sale based on certain conditions like obtaining a loan, selling existing property and successful completion of pest and building inspections. Keep in mind that sellers may reject your conditional offer in certain instances. For example, sellers may reject conditional offers based on longer settlement periods if another buyer offers a higher or similar sale amount within the requisite settlement period of the seller.
If you have made an offer on the home that's lower than the asking price, the seller may choose to reject it. The agent may then request you to make another offer that is mutually acceptable. Negotiations involve agreements regarding price, settlement period and items to be included and excluded in the sale.
If you have made an offer in writing, your contract should include your offer price, settlement period, conditions required based on loans, or building inspections and items part of the purchase. A written agreement through property negotiations ensures complete transparency between both parties.
Generally when you make a written offer for private property sales, you will either need to pay the full deposit amount or a nominal amount, with the remaining deposit to be paid by a set date. If the agent manages a sale, the deposit you pay will be held in the agent's trust account until the settlement period.
In the absence of an agent, you may make the deposit payment directly to the seller, who will pay the deposit to their conveyancer or solicitor to be held in a special account. This account should be in the seller's and buyer's name, which is usually set up by the seller. This will be held till settlement.
Cooling Off Period During Private Property Sales
A cooling-off period applies to private property sales irrespective of price. Every state has their own rules when it comes to the cooling-off period, which gives you time to reconsider the offer. Depending on which state you reside in, the buyer has a five-day or three-day cooling-off period.
In states like Tasmania and Western Australia, the cooling-off period does not apply. This cooling-off period commences from the date you sign the contract. If you decide to back away from the offer, you are entitled to a full deposit refund, but will still need to pay a small fee based on the purchase price.
Keep these factors in mind if you're planning to make a purchase through private property sales. For more information or assistance, contact resources like Donley Real Estate.