Dear all,
I was just wondering whether any of you had purchased a property without going through a real estate agent?
In talking to a neighbour last night I found out that they were putting their tonwhouse on the market in the coming weeks. I was already planning on buying in the area so thought I could jump in quick with an offer before they officially list with an agent.
The owner has already told me what price they were looking for their property. I am thinking I could offer this price less what they would be paying in agent fees. I believe their intended asking price is pretty reasonable in the first place.
I am just unsure as to whether we need an estate agent to facilitate this process? I am sure all sale documents could easily to be drafted by a solicitor? Is there any real need to go through an agent if you can agree on a price before listing with an agent?
in a nutshell would really appreciate it if someone could walk me through the process of buying/selling if an agent is not involved.
Thanks everyone much appreciate any advice at all here!
Josh
Hi Josh
Definitely no need for an agent if there is already a buyer. I sold my own property a couple of years back and the hardest part was getting people to your property and negotiating. So the first of these is done you just need to do the second.I'd suggest you offer asking price minus half of agents fees so that the buyer and the seller benefit
When I sold my place I just googled how to sell your own property and there were plenty of websites giving the easy steps required.
Hi Josh
We buy and sell property continuously without Agent assistance. A quick run down of what the seller and buyer needs to do in the transaction you mention is:
1. The Sellers go to their solicitor and ask the solicitor to draw up a complete Contract of Sale
2. The Sellers solicitor sends the resulting Contract to your solicitor and he/she does all the necessary due diligence
3. The Seller and you both sign the Contract and contracts are exchanged
4. A few weeks later the sale is completed.If you're getting a loan to buy the property, there will be a few finance steps added to the process but they are completed buy your lender/broker and your solicitor and the Agent is not usually involved in those processes anyway.
Just my opinion but I'd be asking for a discount on the property of at least the full amount of the Agent's commission
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks CMason and Paul for your prompt responses here!
It is comforting that both of you to not see this as much of a problem. I do intend to do use a broker for the loan so am glad they can facilitate the rest of the process!
In terms of them getting their solicitor to draft a contract of sale do you know approximately how much this would cost? I intend to put an offer in at a discount equivalent to the full cost of the agents fees but the owner may reject I on the basis that they would still have to pay extra solicitor costs. I guess the upside for them is the house is sold quickly without the inconvenience factor!!
Thanks for this again much appreciated.
Josh
Provided it is a straightforward sale, you could both use the same conveyancer/solicitor. Offer the vendor's asking price less agent's fees and then agree to split conveyancing costs. That seems a very straightforward solution to me. I'm sure that the vendors would be very happy to sell a property so easily.
Cheers
K
You could always sweeten it for them with a longer settlement date, so they can arrange for their next place in their own time….
Not a problem for you either… You get the place for the price nominated, save yourself a few weeks mortgage, and score a few weeks extra time to line up a tenant.
brisbaneJosh wrote:In terms of them getting their solicitor to draft a contract of sale do you know approximately how much this would cost? I intend to put an offer in at a discount equivalent to the full cost of the agents fees but the owner may reject I on the basis that they would still have to pay extra solicitor costs. I guess the upside for them is the house is sold quickly without the inconvenience factor!!
JoshHey Josh
In NSW, (i think it's different in Qld) the vendor would still have to pay for the solicitor to draw up the contract of sale documents if they went through an agent.
The agents primary role is to simply market the property and negotiate the sale price.
The actual finance / contract reviews and conveyencing is done externally to the agent. If anything, the agent simply acts as a central point of contact and ensures that all parties have the required paperwork etc.
Matt
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