- Posted 22 Jun
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Some home vendors may offer to sell their home in a private sale for a number of reasons. In some areas of the country, private sales are more typical because of market conditions. Other reasons include the desire to move quickly and the desire to keep financial business private.
So why should you, as a buyer, consider a private sale? Auctions can be stressful, and you may have to go to several before you are successful. Private sales give you a chance to do your research and have a more focused approach to finding a property.
Here are some tips to make your buying process a success.
#1: Do your research
You need to have a firm grip on what the home finance market is like in the neighbourhoods you are scouting, so you’re going to need to research properties and areas. Experts suggest inspecting at least 50 homes so that you can put an accurate value on a property’s worth. Then you’ll be able to know an approximate value by looking at features and location.
If you are unwilling or don’t have the time to put into this kind of research, consider hiring a buyer’s agent. An agent knows the market thoroughly and can guide you through the process of finding the right property at a fair price.
Real estate is in a seller’s market right now, meaning the buying process is very competitive. A buyer’s agent may give you the edge you need.
#2: Meet with the vendor
Once you’ve found a private sale home you are interested in, set up an appointment with the vendor. This is your chance to tour the property and check out the neighbourhood. You can also demonstrate your knowledge about the local market and stress that you are looking around. You don’t want to appear too desperate to buy.
Questions you may want to ask the vendor include how soon are they hoping to sell and why are they moving? Have there been other buyers who have put in offers? If there is no listed price, you’ll want to get a feel for what the seller is hoping to get.
If you are really interested in the home, you may want to ask what would it take to make the deal happen today? Or offer your best price as a cash offer (if you’re able to do this).
#3: Make the offer
If you’ve decided this is the right home for you, use your research knowledge to determine the property’s value and then make an offer. But experts advise buyers not to make their highest offer first. If the seller is really motivated, they make accept a lower offer. If not, they may counter and ask for a higher price.
The offer process varies in different states, so make sure you understand what is expected. Talk to your agent and ask if you get a right of reply and ask any other questions you have. You may also want to consult a solicitor if you don’t have a buyer’s agent and you need help with the offer process.
If you are researching private sale properties and would like to know more about home loans and the pre-approval process, contact Australian Credit and Finance’s team of experts.