Real Estate Tips – Selling Your Property
SELLING YOUR PROPERTY contact Evolution Real Estate
THE POINTY END – Contracts and Negotiating your sale
Finally they come, offers of contract. Selling your property contact Evolution Real Estate
One of the advantages in Queensland is that the contract (Form 6 formerly – PAMD Form 22a) is generally easy to understand and alter without the necessity of extraordinary legal expense. We are not suggesting that you don’t have a solicitor or conveyancer, they are very important!
However, you can decipher the contract yourself to assess its true viability. Things you may consider are;
- Is the contract subject to finance? If yes, this means your buyer is waiting for the bank to approve the loan, usually a time frame of 2-6 weeks will form part of this condition, the shorter times frames are preferred. This is a very common condition to a contract, whereas a contract without a finance clause in most cases means the buyer is cashed up, this is highly desirable.
- Is the contract subject to Pest and Building Inspections? If yes, this means the buyer will invest in an industry expert to carry out the inspections, this is not a bad sign as it shows commitment. Naturally a negative report may lead to dissolving the contract or lowering the offer price to complete.
- Is the contract subject to sale? If yes, this means that unless the buyer sells their current property they will be unable to achieve the finance required to buy yours. This may be attractive if you have the luxury of time, but generally should be considered as a gamble.
- Other conditions, may include searches, soil tests and a host of others, this is where it is wise to seek expert legal advice.
- What about long settlements? A long settlement can be a very amicable agreement, it’s important here to assess your cash flow, as funds will not be transferred until the settlement date. You may end up with two mortgages! Legally you are still obliged to pay rates and services and maintain the property until settlement occurs.
- What if the contract price is unacceptable? There are a couple of scenarios here. First you can decline and thank the buyer for their offer or secondly you can counter their offer. The later is achieved by simply striking through the buyer’s price and inserting your own and initialing the changes. Your agent will then present the new price to the buyer, your buyer also has the option to countersign with a new amount. The same principle can be applied to dates or other terms with countersigning. Be aware though, bartering over a few thousand dollars can leave you without that buyer, you’ll be back on the Open House round about, may incur additional advertising expense, mortgage expense and preventing you to move forward in life. It’s worth weighing up what it’s worth to you.
- Ready to sign? Once the buyer and the vendor sign the contract it becomes legally binding, your real estate agent will provide a copy to the vendor, buyer and their legal representatives. The property is then ‘Under Contract’. Once conditions such as finance, pest and building inspections are met in the nominated time-frame, the contract becomes ‘Unconditional’. By signing the contract other potential buyers may exclude your property for consideration, in a competitive market a good agent will ensure a backup contract is waiting in the wings.
Your agent and legal representative will keep you posted as to the Sale’s progress. Congratulations, you sold it!
For more information on selling your home, contact the experienced Evolution Team for all your real estate needs.
More information is available on the REIQ website http://www.reiq.com/