Monday May 11, 2009
Think before you go DIY
Savings in commission are an incentive to sell a home privately, but the decision of whether or not to use an estate agent should be considered carefully.
Estate agents are often able to secure better prices - among other benefits, they have access to an existing buyer base.
Private sellers usually have little or no skill or experience in negotiating, marketing and financing the sale of a house, apart from the legal implications.
Also consider the demands on your time, your knowledge of the real estate market and advertising costs.
A good estate agent should take care of all the marketing detail, show the house, and help determine a price.
If a property is overpriced it won't sell and will become "tainted" after being advertised for months on end, leading to perceptions that there is something wrong other than its inappropriate price.
If you decide to go it alone, first determine the realistic value of your property. You can ask an estate agent the fair market value and how much similar properties in the street or area have sold for.
Marketing can be done by means of a signboard on the property, ads in local newspapers, internet classifieds, internet services or distributing pamphlets, posters or brochures.
The process of drafting an agreement may vary. But in a typical transaction, the purchaser prepares the offer and presents it to the seller.
Either the employed agent or a property lawyer assists the seller and buyer with the drafting of the Agreement of Sale and Purchase.
If selling privately, it is strongly recommended that you arrange for a property lawyer to help you draft the agreement - and explain it.
An Agreement of Purchase and Sale is a binding legal document and should not be signed unless you fully understand all the terms.
The agreement should make provision for the names of the parties, a property description and the arrangement of finances.
Anything that might be considered a fixture that a seller would like to be able to take with him when he moves should be expressly excluded. Items that are not fixtures and which a purchaser may want to include should be specified, in as much detail as possible.
It is also advisable to make provision for occupational interest, in case of transfer delays.
Avoid loopholes that can be exploited later. For example, a buyer may first need to sell his existing property or obtain mortgage bond finance.
Specific time frames and amounts should be stipulated.
Sellers also need to be aware of any automatic extensions that could cause delays.
Sunday Tribune
Posted at 10:50AM May 11, 2009 by Editor in Market |
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