Selling Options

Selling by Auction

• Maximum exposure generates market impact.
• You set the reserve price.
• There is no cooling off period at auction.
• Controlled open house inspections.
• Competitive bidding can produce two things a better final price and there is no price barrier.
• If the sale doesn't occur at auction you can usually negotiate a private sale soon after with those interested.
• If the reserve price is reached you're guaranteed a sale as all bids are unconditionally.
• A sale made under the hammer is definite.

• Your property could be passed in and you may still be required to pay auctioneer 's fees and costs associated with marketing your property. 
• If the property fails to sell at or around auction buyers are put in a stronger negotiating position.

Selling by private sale

• You can put your property on the market very quickly and obtain immediate feedback.
• If you have a number of people interested your agent can negotiate for a higher price.
• You may also interest those buyers who are nervous about auctions and prefer to know you're asking price.

• Buyers at private sale can make conditional offers.
• Buyers may withdraw from a private sale or reduce their original offer.
• Buyers have more time to look around at other properties.

The contract exchange is a critical point in the sale process:

• The buyer or seller is not legally bound until signed copies of the contract are exchanged.
• Buyers of residential property usually have a cooling off period of five working days following the exchange of contracts during which they can withdraw from the sale.
• If the agent arranges exchange of contacts, the agent must give copies of the signed contract to each party or their solicitor or conveyancer within 2 business days.
• The cooling off period can be waived, reduced or extended by negotiation.
• There is no cooling off period for sellers. Once contracts have been exchanged, sellers are generally bound to complete the agreement.

There is no cooling off period when purchasing at auction

• Do your research, plan and have patience to make a successful purchase.
• Shop around for the right home loan that suits you and not the banks.
• Compare banks and their lending fees.
• Find a right finance broker.
• Your loan has a two stage process (a) getting a pre-approval and (b) getting the loan unconditionally approved by your bank.

Choosing what to buy

• Always ask for the copy of the contract for sale from the agent.
• Ask One Title Conveyancing to look over the contract for you at no obligation.
• Arrange any necessary building, pest and strata reports.
• Inform your bank that you have found a property and forward them the front of the contract in order to carry out a valuation on the property if required.
• Attend to the Home Buyer's Checklist for Homes & Units on One Title Conveyancing website.
• Visit the property on more than one occasion so as to be totally satisfied with the property.
• Make an offer. It is more preferable to have you offer in writing and shown to the vendor.
• Refer to sample letter regarding letter of offer on One Title Conveyancing website.
• Contact your bank and ask the progress of your loan.
• Once you loan is unconditionally approved and you have been notified in writing by your bank you may then proceed to exchange contracts.

Making an offer

• Making an offer on a residential property is a significant step. Before submitting your offer amount to the agent or vendor (seller), it makes good sense to be well prepared for what might follow.
• Obtain a copy of the sale contract as soon as possible and have it examined by One Title Conveyancing. Doing this prior to making an offer will save time if you need to move things along quickly.

Paying an expression of interest

• Once you have made an offer on a property, you may be asked to pay an initial deposit as an expression of interest. This won't mean that the property is yours or that it gets taken off the market. It only proves to the seller that your offer is serious.
• The seller or agent can take as many preliminary deposits as they like for the one property. However, when you pay this deposit, the agent must provide you with a receipt and tell you in writing that:

• they have no obligation to sell the property to you
• you have no obligation to buy the property
• they will refund your deposit if you don't end up entering into a contract to buy the property.

• The agent must also let you know if someone else makes a later offer on the same property.
• It is important to remember that the agent selling the property is not working for you, the buyer, but for the seller.

Offer accepted, but it's not yours yet 

• If your offer is accepted, be ready to sign the sale contract and proceed through with the exchange process.
• Do not sign or exchange the sale of contract until you have discussed it One Title Conveyancing.
• Prior to the exchange of the contracts, the vendor is free to negotiate with other purchasers for a higher offer. If the vendor accepts another offer and exchanges contracts with that party, any purchaser who misses out on the property despite having a verbal agreement to buy it is gazumped.

Gazumping

• Gazumping occurs when you have a verbal agreement with an agent or seller to buy a property at an agreed price but the property is not sold to you in the end. This usually happens when the vendor (the person selling the property) has decided to sell the property to someone else, usually for a higher amount.
• If you are gazumped, neither the agent nor the vendor is obliged to compensate you for any money you may have spent on legal advice, inspection reports, finance application costs or inquiries. However, your ‘expression of interest' payment (if you have paid one) must be refunded to you in full.

Protect yourself

Some ways to protect yourself from being gazumped are:

• Always have your loan finance pre-arranged, and ensure you can pay the 10% deposit, by Bank Cheque or a deposit bond so there is no delay before attempting to exchange contracts on a property.
• Obtain a copy of the sale contract as soon as possible and have it examined by One Title Conveyancing.
• Seek to exchange contracts with the vendor as soon as possible. Anyone purchasing residential property has a five-day cooling off period commencing from the time of exchange of the contracts. Only the purchaser can waive the cooling off period and it can be extended by agreement.
• During this time, you can do a building and pest inspection and have the contract examined. However, if you rescind the contract during this period, you forfeit .25% of the purchase price to the vendor, as the property has been taken off the market for a period of time. The amount forfeited is recovered from the deposit you paid under the contract. If the amount of the deposit is insufficient, you will have to provide the necessary additional funds. You should find information relating to the cooling off period in your contract.
• Negotiate firmly with the vendor or real estate agent. Insist on the agent passing your bona-fide offers to the vendor and obtain written proof of this occurring. The law requires agents to do this.
• Be ready to exchange with a signed copy of the contract and follow through on the exchange process yourself or with another trusted person to ensure exchange. If you are advised that other offers have been made, demand to see written evidence. If you are certain that you want the particular property, be ready to possibly increase your purchase offer to the vendor.
• Be aware that the vendor is not generally compelled to sell to any specific person and can change their mind at any time prior to the exchange of contracts.
• Vendors may not necessarily sell to the highest offerer, but may accept a lower offer from a prospective purchaser