Having trouble with private sales?
Are you having trouble with private sales? The market is rough out there for the inexperienced buyer.
Having trouble with private sales?
Numbers of private sales are increasing and auctions decreasing in 2018. According to the REIV last weekend there where 886 auctions held. The same time last year there where 932. Also, clearance rates at auctions have dropped from 72% same time last year to 64% last weekend.
The main advantage I see about an auction environment is that you have transparency. You can directly see who you’re bidding against, and since dummy bidding has been outlawed, there are no fake offers coming that you can’t identify.
Private sales lose the transparency of the auction system as you can’t see who you are competing with to buy the property. You are reliant on the selling agent and a lot is at stake if you really want to be putting the sold sticker up after the process is complete.
How private sales can be difficult.
Multiple methods are adopted by selling agents around Melbourne for private sales. Asking price, quoting range, sale by set date, it’s confusing. Different selling agencies also have different rules and timelines when selling privately. Some allow multiple offers, others only one “highest and best”. Do you know the rules? Even knowing the rules, do you know how to play them to your advantage as the buyer?
Auction sales have been flying for many years and buyers had to attend and bid to buy. Now, if buying by private sale, how do you know if other offers are real? Buyers must understand that it’s the selling agents job to drive the price up for the Vendor, not to look after the buyer.
Despite my nearly 30 years of experience buying and selling real estate, I am finding some transactions extremely challenging and difficult to manage, I cannot imagine inexperience buyers would be coping well at the moment.
Here’s an example of a recent buying experience for a first home buyer client at Buyer Solutions……….
Firstly, she picked a property where the property was being sold with a courtyard, a lovely north facing deck and glass bi-fold doors onto the outdoor space. She appointed Buyer Solutions to help. On doing our research, the courtyard was not on title. The selling agent said there was a lease for the courtyard. But, it had never been signed and was illegal. So, the courtyard was common ground. We did not recommend buying this property.
Buyer Solutions found another property, in a better location with two courtyards on title. Then, the games commenced. The selling agent gave us a Vendors Statement but it was missing the Owners Corporation information, so we had to wait 2 weeks for that to arrive. During that 2 weeks, interest was growing and so was competition. On the day we made an offer there were at least 4 other offers that we know about. Buyer Solutions was very strategic on timing and what information was and wasn’t disclosed curing the negotiations. Also the terms of the offer were critical to its ultimate success. On Tuesday evening, our client successfully bought the best property in her budget.
If you are looking for a property currently and need help with agent liaison, tactics, advice on how to buy,what to pay, how to try to beat other buyers to the prize, then call our team at Buyer Solutions.
Buyers Advocate, First home buyers, Home buying, Janet Spencer, Overseas Buyers, State of the market
+61 39816 8555