What is a private sale?
Listing your home on the market for sale will bring two questions with the type of sale; to auction or to sell via a private treaty sale.
Auctions have been the favoured method of many sales agents and sellers for some time, however, when the market cools, we can often see more private treaty sales. One of the benefits of a private sale is more time to negotiate through the final price and the terms of sale.
If you are looking at a private treaty sale, your agent will talk with you about setting a price that you may want to achieve for the property. They will consider comparable sales and properties, the market fluctuations and recommend a price guide.
Together you can talk through a realistic price to set and have in mind what figure you are happy to eventually settle on, both at the lower and higher end of the scale.
Prospective buyers will be shown through the home at open and private inspections by appointment with the agent and interested parties can then put forward a price that they are willing to pay for the agent and your consideration. The agent is required to present all offers to you that are received from prospective buyers.
If the offer and your price are at different ends of the scale, the agent will work with the prospective buyer and you as the vendor to negotiate an eventual sale price. Once a price is accepted, the buyer will be required to pay a deposit for the property and the negotiations usually proceed to what is known as a cooling-off period, unless this is negotiated otherwise.
Contracts will have been drawn up by solicitors and agents and exchanged between both parties. Once this has happened reports such as valuations, and building and pest inspections can take place during the cooling-off period and before a date is set for settlement.
The requirements for a cooling-off period can vary from state to state and in some cases, there are requirements for forfeiture of the initial deposit, should the buyer rescind the sale.
On the date of settlement, money will change hands, any mortgages discharged, and the keys can then be handed over to the buyer for their new home.