Traditionally, when Western Australia property owners want to sell their homes, their first option would be to turn to private treaties wherein the property is listed with an asking price. When a prospective buyer expresses interest in a property he or she negotiates for a lower price, often through the aid of a real estate agent, factoring current property market indicators.
However, in a feature article posted on Real Estate Institute of Western Australia's (REIWA) website, the industry-based portal offered several alternatives to private treaties, outlining the advantages of each.
One of the most uncommon methods to sell a property in WA is through an auction. According to REIWA, the advantages of selling properties through auctions include shorter marketing periods and the ease in finding buyers. Additionally, participants in a bidding process are considered to be more serious and committed to purchasing a property. In an auction, when the reserved price has been met or exceeded, the successful bidder needs to immediately deposit 10 percent of the final price.
Another option that Western Australia property sellers can consider is to invite offers within a specified date. This method is known by several names including expressions of interest, set date sale and end date sale. In expressions of interest, a seller may set a price range while in set date and end date sales, the seller does not necessarily have to set a price range.
With either methods, a property is typically out on the market between four to six weeks, enough to allow several potential buyers to inspect it. Interested buyers can express their interest to purchase through formal written communication. Generally, submissions will only be entertained until a set date and interested buyers are urged to submit their best offers.
"If you’re selling, you should discuss with your agent your desired conditions of sale, including price, settlement date, whether you will entertain finance conditions and inclusions and exclusions of the sale," advises a representative of REIWA.
Once all of the submissions have been gathered, the property seller can discuss the offers with the advice of his real estate agent. If there are no suitable offers, the seller can once again put the property up for sale.
For interested buyers, the property portal advises them to clarify whether offers will be accepted any time or only at the end of a set date. REIWA also encourages buyers to avoid placing other offers on other properties whilst they have an outstanding offer. Other matters that buyers need to clarify include the requirements and whether an offer is equal to a contract or merely an expression of interest.
For sellers, their real estate agent should show compelling reasons why a particular method is the best choice including comparisons on price and selling periods.
For more helpful tips and information regarding the Western Australia property market, visit REIWA's website today.