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Fletchers Guide to Buying Residential Real Estate – Part 2

May 24th 2011

This week we take a look at the Private Sale process, including Expressions of Interest and Set Sale strategies.

Private Sale

A private sale property is placed on the market without a time deadline and is usually advertised with an asking price, and terms acceptable to the vendor.

The asking price generally represents the price that will secure the property if offered unconditionally on the terms advertised. Often there is an opportunity to negotiate the terms and conditions as well as the price. However, an offer may be less attractive to the seller if there are onerous conditions, even if the price is acceptable.

If you wish to make an offer to purchase a private sale property, first speak to our property consultant. Your offer will need to be made in writing and it must be accompanied by an appropriate deposit. Our property consultant will submit this offer onto the vendor. The vendor may accept the offer or negotiate with you by way of a counter offer. An offer is not legally binding until the buyer and seller have agreed on price and terms, and both parties have signed the Contract of Sale.

Until Contracts of Sale are exchanged the owner has no obligation to sell to any particular buyer and will generally sell to the person offering the best purchase price with acceptable terms.

Expressions of Interest by Set date

Where expressions of interest are invited by a specific date, there is generally not a set price, but often a price guide is provided.

Buyers interested in purchasing a property offered for sale in this manner will need to research the property and the local market so they are in an informed position to make their best possible offer for the property. At the closing date, all offers are presented to the seller. If one or more offers are acceptable to the seller in regards to price, terms and conditions, then the seller will choose the most attractive offer and the property will be sold.

The seller generally reserves the right to sell prior to the closing date, so you should certainly make your interest known to our property consultant at the earliest opportunity, and then all efforts will be made to keep you informed of any developments.

This method of sale is also referred to by various agencies as “Set Sale” or “Sale by Set Date”, and several other variations on this theme.