Private Sale
As the name suggests, a private sale is a sale that excludes a Property Practitioner and is concluded privately between the seller and the purchaser. The seller is responsible for their own marketing and selling of the property, which often leaves them at a disadvantage as they do not have access to the marketing budget and no contractual commitment.
Advantages:
– No commission payable.
Disadvantages:
– No support network concerning the sale. Property Practitioners network regularly with other Property Practitioners, bond originators, bank officials, and attorneys.
– Typically, no access to property statistics may lead to setting the wrong price.
– Limited exposure to potential buyers, which theoretically means your home will take ten to fifteen times longer to sell, as Property Practitioners usually have access to an existing buyer base, while private sellers do not.
– Typically, the critical buyers you will encounter have not been qualified regarding their finance.
– The longer the home is on the market, the lower the selling price.
– The perception by buyers of “private sale” is that it indicates an overpriced property or that there is something wrong with it/practitioners won’t touch it.
– Typically, the selling/buying process begins AFTER the buyer leaves your home, i.e., contract negotiation, liaison with attorneys, etc. So much can (and will) go wrong if this is not managed by experienced professionals.
– Most buyers find it extremely awkward to negotiate or even talk directly with sellers and therefore avoid private sale properties.
– The majority of qualified buyers are working with experienced Property Practitioners.
– Only Property Agencies may advertise in local property finders, and normal advertising costs in local papers are high.
– Security and Safety: YOU ARE OPENING UP YOUR HOME TO ANY STRANGER OFF THE STREET.
Sellers have the option of using any of the above mandates when appointing a Property Practitioner; however, you, as the Property Practitioner, also have the right to choose which mandates you are prepared to work under. No seller can insist that you accept a certain mandate and at the rate of commission they are willing to pay. As a Property Practitioner, you need to have decided your own worth and value before entering into an agreement to market a property.
Other possible terms to be included in the mandate: (not included in a Golden Homes mandate)
– Acknowledgement that the Property Practitioner acts for and on behalf of the seller.
– The Property Practitioner will keep confidential information which the seller requires to be withheld from potential buyers (like the fact that the seller is emigrating and is desperate to sell).
– The Property Practitioner will submit all offers to the seller.
– The Property Practitioner has valued the property.
– The Property Practitioner submits the proposed marketing and advertising strategy to the seller.
– The Property Practitioner submits proposed advertisements to the seller for approval.
– The Property Practitioner will furnish the seller with a weekly written progress report and a list of prospective buyers and their comments.
– The Property Practitioner will, after the conclusion of the agreement, submit the document to the conveyancer and furnish the seller with a weekly written progress report on the transfer procedure.
– The Property Practitioner shall make good any damages incurred by the seller while the seller’s property was under the custodianship of the Property Practitioner (for example, on show days).
Important to Note:
If a seller has given an “open mandate” to any Property Practitioner/agency, they need to cancel this (even verbally) if they then sign a sole mandate with another Property Practitioner.