Q & A on selling your home...
1. Do we need to sell before we buy?
You can do it either way around and there are pros and cons with each. Instead, most people go for a 'conditional' agreement, which means that buying the new house is subject to you being able to sell your current one. Conditional agreements usually give you around 6-8 weeks to sell. There's also usually a 'cash out' clause that lets the vendor sell at any time if they find a cash buyer – but only if they offer you that opportunity first. Bear in mind though, if you're bidding at an auction you can't put in a conditional offer, you must have your finance ready to go. In a busy market where there are many pre-approved cash buyers your chance of securing a property is difficult, and
2. Real estate agent or private sale?
Selling your house without using a real estate agent is possible, but certainly takes time and effort. It could potentially save you thousands of dollars depending on what your house eventually goes for. And you'll have more control over negotiations because you'll be dealing directly with potential buyers. But overall, it may not be as simple as you think, and you'll need to have a think about how you'd feel taking strangers around your open home.
If you go with a real estate agent, you'll benefit from their knowledge of the market, and their marketing and negotiating skills to get you the Best price in your current market place, which could far out way a private sale. Agents also have access to print publications and specialist websites for marketing that private buyers do not, therefore reaching all your potential buyers.
Be aware, that if you BUY privately, legally you have no come back if you have purchased a property that has a fault, or would test positive for Methamphedamine.
3. Should we have an auction?
The main advantage of selling by auction is that it creates urgency – there's a time limit on negotiations and the sale must be unconditional. Potential buyers need to get serious and have everything sorted by auction day. The sense of competition on the day can also kick off a bidding war that could drive the price higher than you expected. In hot markets, auctions can do very well. On the day you have an unconditional cash sale. But in regions where there are fewer potential buyers, methods like by negotiation, by asking price, or by tender might be more successful.
Posted: Thu 16 Jun 2016