Page 26 - Real estate: a guide for buyers and sellers
P. 26
Real estate: A guide for buyers and sellers
How you decide to sell will depend on Common features
many factors. There are generally two of an auction:
ways that real estate can be bought and
sold – by private sale or public auction. • the price is determined
by competitive bidding between
Private sale prospective buyers
In a private sale, the property is advertised • the contract is unconditional
and offers are invited from prospective • you have no cooling-off rights if you
buyers. The sale is negotiated between the
buyer and seller, usually with the help of buy at auction.
an agent.
SELLER’S TIP
Common features
of a private sale: Although auctions are a popular
method of sale, it is important to do
• the seller and buyer your homework to decide if it is the best
negotiate a sale price method for you.
• the contract may be conditional – Deciding on a method of sale
with the seller’s approval, the buyer
can make the sale subject to finance The agent will recommend a method of
(obtaining a loan), a satisfactory sale for your property based on its type
building inspection report, or other and location, the nature of the market and
conditions your available time frame and personal
preference. They should also back up their
• there is a three business day cooling- recommendation with recent sales data.
off period (with exceptions) for You should understand all the advantages
residential properties. and disadvantages before deciding on a
method of sale. The agent’s commission is
Public auction generally the same whether the property
is sold privately or at auction.
An auction is a public sale, usually
conducted by an agent acting as
auctioneer. The auction is advertised for a
specific place, time and date. Prospective
buyers bid and, if the property is declared
‘on the market’, it is offered to the highest
bidder.
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