Buying by Private Sale: Tips & Tricks
Besides bidding at auction, the other most common method of purchasing property is via private treaty. Sellers can often choose to list their property through private sales as it offers more flexibility with negotiation and gives them the best chance to accept an attractive offer.
This doesn’t necessarily mean less legwork however. There is still effort to be put in to ensure you are getting a good value for money.
Shop Around - experts recommend inspecting at least 100 properties to put yourself in the position where you have sufficient information and market knowledge to know accurately what a property is worth. It will also assist you in narrowing down the suburbs you’d prefer to live in.
Research - once you’ve identified your top three preferred suburbs, do your research on recent sales and listings in those areas. This will assist you in determining if properties you are looking at have been assessed fairly and are worth their price tag.
Identify Seller Motivations - it would pay to ask the agent some questions about how motivated the seller is. Have they bought another property? Why do they want to move? What terms and conditions are they willing to accept? Are they negotiable on price?
Make an Offer - make an offer based on your market research and comparable sales in the area, keeping it in line with your budget. Don’t lead with your best offer, keep some room for negotiations as your first offer won’t necessarily be accepted.
Prepare to Negotiate - If your first offer isn’t accepted, and you haven’t led with your best offer, there will likely be an opportunity to negotiate. It would pay at this point to ask if there are any other interested parties, offers made and where yours sits in the ranking.
Set T&C’s - when submitting your offer, outline any special terms and conditions you would like included in the sales contract. Would you like a longer settlement or is there something the seller needs to fix before you move in? Ensure these conditions are included in the offer and the final contract of sale.
Your Stockdale & Leggo agent will be able to guide you through the process so make sure you take full advantage of their expertise and industry experience at each step.