Selling by private treaty_no agents
- Thread starter miket
- Start date
I'm in the process of buying a property directly from an owner.
As the parachutist said five seconds before he hit the ground with his chute not opening- "So far so good".
The price was realistic.
I've seen some properties advertised by owner with just a sign which were dogs. One had cigarette stains even in the tiles. Well, it was 4BR- but the smallest BRs I've ever seen. And the owner was asking a price which compared with BIG 4brs on the good side of town.
Dolf de Roos loves private sales. He has picked up some doozies.
But you really have to know your market well.
As the parachutist said five seconds before he hit the ground with his chute not opening- "So far so good".
The price was realistic.
I've seen some properties advertised by owner with just a sign which were dogs. One had cigarette stains even in the tiles. Well, it was 4BR- but the smallest BRs I've ever seen. And the owner was asking a price which compared with BIG 4brs on the good side of town.
Dolf de Roos loves private sales. He has picked up some doozies.
But you really have to know your market well.
We bought our current home last year off a private seller. He was a do-it-yourselfer.....he renovated himself as well.
Unfortunately neither sales nor renovating were skills of his
It wasn't our best buy, but it was bloody close....and the guy only ever had 2 people come look at the property - we were the only people who put in an offer (and we did wait over a month to soften him up.....he did tell us about his new place, new mortgage & that he couldn't afford to pay both).
When selling direct bear in mind that there's less distance between you and potential buyers - your ego needs to be kept firmly in your pocket!
Using a straw man is a good idea - have your partner (who the buyers never meet) be the final decisionmaker on the price.
Look into some of the do-it-yourself sales kits for home selling. They provide signs, ad suggestions, contracts, tips on how to best present your house & negotiate that can be invaluable as you are learning all these new skills 'on the job'.
Cheers,
Aceyducey
Unfortunately neither sales nor renovating were skills of his
It wasn't our best buy, but it was bloody close....and the guy only ever had 2 people come look at the property - we were the only people who put in an offer (and we did wait over a month to soften him up.....he did tell us about his new place, new mortgage & that he couldn't afford to pay both).
When selling direct bear in mind that there's less distance between you and potential buyers - your ego needs to be kept firmly in your pocket!
Using a straw man is a good idea - have your partner (who the buyers never meet) be the final decisionmaker on the price.
Look into some of the do-it-yourself sales kits for home selling. They provide signs, ad suggestions, contracts, tips on how to best present your house & negotiate that can be invaluable as you are learning all these new skills 'on the job'.
Cheers,
Aceyducey
Miket,
With private sales find out what names are on the Title Deed,
make sure you have two things in place,first the money,cash offers sometimes
will close the sale on the spot.Have a legally enforceable contract agreement
each state has statutory provisions covering various aspects have the contract
draw to suit your investment criteria.The one issue i find with private sales is
very few are undervalued..but time will change that.....
good luck
willair..
With private sales find out what names are on the Title Deed,
make sure you have two things in place,first the money,cash offers sometimes
will close the sale on the spot.Have a legally enforceable contract agreement
each state has statutory provisions covering various aspects have the contract
draw to suit your investment criteria.The one issue i find with private sales is
very few are undervalued..but time will change that.....
good luck
willair..
I have bought privately.
The property was not actually listed for sale. I phoned the owners contacted the owners, and inquired if they may be interested in selling and provided them with my contact details. They got back to me with a price. I the arranged an inspection of the property, then went to a coffee shop and discussed the contract.
We the agreed for their solicitor to draw up a contract at the agreed price and conditions and fwd to our solicitor. Few minor changes negotiated btn solicitors. No problem at all. Easiest contract I've ever settled.
I do think it's best to have solicitors involved in the drawing up of the contract to ensure all parties interests are protected.
Give it a go.
Cheers
BUNDY
The property was not actually listed for sale. I phoned the owners contacted the owners, and inquired if they may be interested in selling and provided them with my contact details. They got back to me with a price. I the arranged an inspection of the property, then went to a coffee shop and discussed the contract.
We the agreed for their solicitor to draw up a contract at the agreed price and conditions and fwd to our solicitor. Few minor changes negotiated btn solicitors. No problem at all. Easiest contract I've ever settled.
I do think it's best to have solicitors involved in the drawing up of the contract to ensure all parties interests are protected.
Give it a go.
Cheers
BUNDY
Private sale.
Hi Miket,
I have sold privately, to a buyer sight unseen, except for a couple of photos sent via email.
Also have purchased privately. Never had a problem to date. Once the contract (offer and acceptance form available from newsagency) is signed by both parties, forward the same to a settlement agent and they take care of the rest, including attending settlement and advising you that settlement has gone through. At least thats how is goes in WA.
Cheers, KPH
Hi Miket,
I have sold privately, to a buyer sight unseen, except for a couple of photos sent via email.
Also have purchased privately. Never had a problem to date. Once the contract (offer and acceptance form available from newsagency) is signed by both parties, forward the same to a settlement agent and they take care of the rest, including attending settlement and advising you that settlement has gone through. At least thats how is goes in WA.
Cheers, KPH
Mikemiket said:
Even though we sold our own house through an Agent, i do consider that we (at least My Wife) actually sold it !
Our agent was all for coming down in price, while the potential buyers were there, but then my wife took over, talking directly with the buyer ! The agent didn't like that !
They bought the house, at a higher price than the agent was ready to accept!But if you are doing it yourself, you need to be hard to get what you want.
eg: We bought a Fridge Freezer for about $2,000, kept it 10 years, then she sold it secondhand for $1,500, I then went out and bought an almost identical brand new one for $1,700. I'm glad we moved interstate before the buyer woke up !!
We purchased our present home as a private sale. The house was not listed,the owners were parents of one of our daughters friends. We heard they were thinking about selling after they had tidied it up a bit.We contacted them and inspected the house. We told them we wanted to buy it as is, they told us to make an offer which we did, they accepted our offer with no negotiating. We got our solicitor to draw up the contract with the usual conditions, they had their solicitor check the contract, signed it and we just let both solicitors do the usual checks etc.We found it a very easy process, they saved agents fees, we bought a house at a very good price, win win for everyone.
Cheers
foston
Cheers
foston
Agents spotted private treaty sale now hassling us
Hi trend setters,
I will tread lightly here because I don't want to offend forumite REA's or any others for that matter.
We listed our property for private treaty sale, (ie. no agent involved) on one of the websites for Vendors trying to sell their property themselves.
Our contact details but not property street or number were listed.
One local agent contacted us shortly afterwards. Give him 10/10 for trying.
He tried to talk the talk (gain the listing) but why would we advertise a private sale method if we wanted a REA? We told him we're not prepared to deal with an agent at present. Tried to be polite.
Today he tried again but this time came out with a beauty;
Said he has a charity looking for a house in our price range. He said he could show them the outside for now, until we're ready for people to go thru. He faxed an open listing agreement, which still allows us to sell, or another agent to sell, and only pay him if he sells.
Sounds feasable seeing Boystown just drew their last prize home next street up. BUT a big BUT. We have not seen any of the charities raffle a prize home including furniture etc for the value our property is listed at. That's what gets me.
Then I got to thinking, hey why not email all the well know charities and attach the link to the website we have the property listed on.
He could be making "his charity" up.
Thanks for your opinions and suggestions.
MikeT
Hi trend setters,
I will tread lightly here because I don't want to offend forumite REA's or any others for that matter.
We listed our property for private treaty sale, (ie. no agent involved) on one of the websites for Vendors trying to sell their property themselves.
Our contact details but not property street or number were listed.
One local agent contacted us shortly afterwards. Give him 10/10 for trying.
He tried to talk the talk (gain the listing) but why would we advertise a private sale method if we wanted a REA? We told him we're not prepared to deal with an agent at present. Tried to be polite.
Today he tried again but this time came out with a beauty;
Said he has a charity looking for a house in our price range. He said he could show them the outside for now, until we're ready for people to go thru. He faxed an open listing agreement, which still allows us to sell, or another agent to sell, and only pay him if he sells.
Sounds feasable seeing Boystown just drew their last prize home next street up. BUT a big BUT. We have not seen any of the charities raffle a prize home including furniture etc for the value our property is listed at. That's what gets me.
Then I got to thinking, hey why not email all the well know charities and attach the link to the website we have the property listed on.
He could be making "his charity" up.Thanks for your opinions and suggestions.
MikeT
Mike T,
It all sounds suss to me.
Your email option sounds good.
This agent appears (on the surface) to be a not quite ethical person. Why is he so desperate to get the listing at any cost? If it was really for a charity- why din't the charity just list the newspapers where (presumably) your place is available?
It all sounds suss to me.
Your email option sounds good.
This agent appears (on the surface) to be a not quite ethical person. Why is he so desperate to get the listing at any cost? If it was really for a charity- why din't the charity just list the newspapers where (presumably) your place is available?
Geoffw,
One thing, the property is only listed on the website.
We may push him for his credibility.
Tell him we will deal but ONLY with a genuine charity and we want bona fides prior to any inspection, as we are well aware of real estate type tricks, and let him know that.
If he’s genuine, then may be a good thing and if we back him into a credibility corner and he squirms, then we'll know what a #*^@ he is. Early days so prefer no agents and no commission.
To throw some more spice on the matter, our current tenant (the bloke) has started working for same agency (2 local offices) this week so won't be long before the office goss reveals all. As I am PM, I'm sure during conversation with my tenant he may raise the sale. He just left LJHooker's. I mentioned we were interested in selling some time ago as they were looking at buying in the area. Unfortunately too much over their budget. They bought next street down. Also told him if he found a buyer on the side (unlisted) I'd happily pay his commission under the table.
Thanks,
MikeT
One thing, the property is only listed on the website.
We may push him for his credibility.
Tell him we will deal but ONLY with a genuine charity and we want bona fides prior to any inspection, as we are well aware of real estate type tricks, and let him know that.
If he’s genuine, then may be a good thing and if we back him into a credibility corner and he squirms, then we'll know what a #*^@ he is. Early days so prefer no agents and no commission.
To throw some more spice on the matter, our current tenant (the bloke) has started working for same agency (2 local offices) this week so won't be long before the office goss reveals all. As I am PM, I'm sure during conversation with my tenant he may raise the sale. He just left LJHooker's. I mentioned we were interested in selling some time ago as they were looking at buying in the area. Unfortunately too much over their budget. They bought next street down. Also told him if he found a buyer on the side (unlisted) I'd happily pay his commission under the table.
Thanks,
MikeT
Why do "some" REA act this way? Are they hungry and dishonest by nature?
So much for the ACT which is in place to keep control of ethics.
Never mind. If there's bait on a hook and you swollow it then who's fault can it be. As long as people are somewhat aware of what's going on then they should not submit to temptation.
So much for the ACT which is in place to keep control of ethics.
Never mind. If there's bait on a hook and you swollow it then who's fault can it be. As long as people are somewhat aware of what's going on then they should not submit to temptation.
There are LOTS of dishonest people out there in the world.miket said:
Many don't consider themselves dishonest...it's only a few pens from a stationery cabinet...a few reams of paper for the home printer - a loose laptop no-one was using - and it's insured anyway so the company will get the money back....etc
REAs are no different - and similar to other jobs where commission is a major portion of remuneration, there is a path whereby some find that not being absolutely truthful helps them feed their families...and occasionally their hobbies.
Are they dishonest by nature? Some probably. Others, because they see the dishonest ones being successful...others as the first two groups start providing training & talk about some areas being 'gray' & then are trained to think in this way.
And some become dishonest because buyers & sellers EXPECT them to be & treat them badly!!!! This kind of negative reinforcement is one of the things that really needs to be stamped out.
That's not to say that most REAs are dishonest or unethical, however it is the minority that are that make the largest impression on people & attract the most attention.
The REAL issues are what values does the SYSTEM teach new REAs AND do we as buyers and sellers treat REAs appropriately so as to encourage & support ethical behaviour - or are we willing to screw the other side (and the REA if we can) to get the most money for us!
Highly ethical agents, like those on this forum - should be uplifted regularly, both to affirm that they are doing the right thing, and to encourage ethics to become a core value throughout all aspects of the REA profession.
The government can't legislate ethical behaviour in any area of life, but individuals like us can embrace, support and encourage it!
Cheers,
Aceyducey
Dissident;
The site we are listed on is http://www.owner.com.au
Once listing a property you can see a counter which shows views of your listing.
There are a number of properties you may list.
Oh, and it's FREE.
If it's for free it's for me
Aceyducey;
Right on, I support that.
We know a number of REA in our areas of investment. Quite well enough that we have a good repore. So as long as you know their 'proffessional character' and you know your business (got your guard up) then you can work well with them.
It's like Sigfred and Roy and their tigers. The tigers are controlable but let your guard down and they'll take you down. hehe
MikeT
The site we are listed on is http://www.owner.com.au
Once listing a property you can see a counter which shows views of your listing.
There are a number of properties you may list.
Oh, and it's FREE.
If it's for free it's for me
Aceyducey;
Right on, I support that.
We know a number of REA in our areas of investment. Quite well enough that we have a good repore. So as long as you know their 'proffessional character' and you know your business (got your guard up) then you can work well with them.
It's like Sigfred and Roy and their tigers. The tigers are controlable but let your guard down and they'll take you down. hehe
MikeT
And another site
http://www.yourestate.com.au/property_4182.php
Follow index bar on this site to navigate around.
MikeT
http://www.yourestate.com.au/property_4182.php
Follow index bar on this site to navigate around.
MikeT
Open Listing
Hi MikeT,
Its standard procedure for an agent to try and secure a listing off a FSBO
Its what they teach in RE school under the topic of "Getting Listings"
Simple way to check if he is dinkum is to ask for the name of his client, and then give him the open listing for that specific client with a fixed time period to negotiate any potential purchase ( ie 7 days for example)
Another trick I have used is to offer an agent a part commission, ie a conjunctional commission.
It is standard practice (in WA anyway) for an agent to request a share of the total commission due, when dealing with another agent who has the listing usually on a 60/40 split.
Therefore, offer him a 50% share of the commission due, on the basis that he would be happy to accept 40% normally on a conjunctional sale with another agent......this is usually met with a pregnant pause, (stunned silence) while he trys to figure out a response.
On the other hand, I have had agents who were interested in completing the sale, (as opposed to maximising the commission on the sale) and who had a genuine purchaser,who were happy to accept this arrangement.
Its your property, and your choice how you sell it and how much you pay for that service...
Cheers, KPH...
Hi MikeT,
Its standard procedure for an agent to try and secure a listing off a FSBO
Its what they teach in RE school under the topic of "Getting Listings"
Simple way to check if he is dinkum is to ask for the name of his client, and then give him the open listing for that specific client with a fixed time period to negotiate any potential purchase ( ie 7 days for example)
Another trick I have used is to offer an agent a part commission, ie a conjunctional commission.
It is standard practice (in WA anyway) for an agent to request a share of the total commission due, when dealing with another agent who has the listing usually on a 60/40 split.
Therefore, offer him a 50% share of the commission due, on the basis that he would be happy to accept 40% normally on a conjunctional sale with another agent......this is usually met with a pregnant pause, (stunned silence) while he trys to figure out a response.
On the other hand, I have had agents who were interested in completing the sale, (as opposed to maximising the commission on the sale) and who had a genuine purchaser,who were happy to accept this arrangement.
Its your property, and your choice how you sell it and how much you pay for that service...
Cheers, KPH...
I've just found out the downside.geoffw said:
I provided $2K good faith deposit.
The inspection showed enough problems for me not to proceed.
So I've paid about $700 in inspection fees, perhaps $400 for legals, and I don't really have a guarantee of getting my deposit back (as it was not loedged with a solicitor's trust fund).
Not a whinge, because a private sale can come good- just a possible downside,
ACT are just introducing laws to force sellers to provide building and pest inspections- refundable by the purchaser. Too late for me this time- but perhaps enough for me to participate in auctions without having to pay another inspection (and I suspect t6here's many inspectors who have provided the same inspection multiple times to prospective auction buyers)
