There are many factors, different terminologies, and requirements that you need to take into consideration when buying and selling a property. To be knowledgeable and successful in the property market takes time, experience, learning and research. In this issue, our focus is on educating our investors about the property market, a transaction's hidden costs and the terminologies often referred to.
UNDERSTANDING THE METHODS FOR BUYING AND SELLING A PROPERTY
If you are looking to buy or sell a property, then you need to understand the different terminologies or methods used.
Private Treaty or Sale – This selling method requires the seller to set a price from the outset that can be negotiated between the parties. Once an offer is accepted, there is a cooling-off period and certain conditions, such as obtaining finance approval and inspection reports for the sale to become unconditional.
Contact Agent – This selling method is designed to get the buyer to contact the agent to request the price, as the seller may not want to publicly disclose the selling price.
Auction – This selling method is where buyers publicly bid to purchase a property. The seller will set a reserve price, which is the price they are willing to sell the property. Once the reserve price is reached, the property is placed on the market for sale, with no pending conditions. When bidding at an auction, it is important to have your finance approval and conduct all searches and inspections before the auction day.
Expression of interest – This selling method is like a private treaty. However, it requires written offers from the buyers to be passed on to the seller. There will be a stipulated close date for all offers, and the property price is not always advertised.
Tender – This selling method requires the buyer to submit a formal bid in response to the seller's tender price. Buyers will compete against one another without knowing the other parties' offers. The property is usually sold to the highest bidder. When deciding to sell your property, it is best to speak with your real estate agent to discuss the pros and cons of each selling method.
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