What Can Go Wrong During The Sale Of Your Property
The things that can go wrong during your transaction can cost you $20,000 on
your selling price!
There are a lot of things that can go wrong when selling your property, but have you ever thought of what can go wrong during your transaction?
So you’ve got a buyer and you have agreed to a price. So what’s next? Don’t you to just send the paperwork to the solicitors and they will hash out the details?
Well you can do that but you might find a rude shock when you have to pay for a dishwasher or a dryer. You see it’s all got to do with how you set up the transaction before a contract is signed.
This is where a real estate agent’s experience saves you money and sets up the vendors and the buyer to win before a problem could potentially arise. The thing is if you don’t explain such things as;
- Navigate the disclosure of modifications and extensions
- Negotiate rent back options
- Valuations and bank valuers
- Negotiate chattels of fixtures
- Pre-settlement inspection
- Negotiate settlement periods
- Attend pest inspections
- Attend building inspections
- Advise buyers law around deposits
Without negotiating these details you may not even get to the point where you have a signed contract with .25% deposit. It is not a good idea to rely solely on your solicitor to negotiate the details after you’ve agreed to a price. You may even lose the deal altogether. Click here for what characteristics should I look for in a good solicitor?
There is a fine art to keeping together a deal through the cooling off period. I have seen many good prices achieved for owners only for the buyers to get scared off and pull out of the deal or the bank valuation comes in too low and the bank choosing not to approve finance for what the buyer needs.
This is where the skill of the agent kicks in.
Some deals are easy to put together and some deals keep on falling apart and we have to keep on sticking them back together again all the way up until settlement. When one of those deals finally goes through and we get our commission we know we have earned it.
What people don’t realise sometimes to put together a deal like this we have been making and receiving phone calls anywhere from 5am in the morning to 10 or 11 o’clock at night.
Giving examples here of what can happen in one transaction from signing of
the buyer to settlement.
buyers can see an extension that was not originally part of the home and they ask us “did the home owner build themselves? does it need to be Council approved?” Believe it or not this can make a buyer nervous.
They come for a private inspection they see a dishwasher and ask if that’s comes with the house. What they are doing is they are calculating how much they have to spend on extras and building that into their offer.
Lots of buyers don’t know the law around deposits and think they can take your 2.5% deposit if they pull out during the cooling off period. Also, they want to do their pest and building inspection before they put a deposit down which can slow down the buying process and perhaps this could loose a good price for your property. If you want to know more about law around deposits and how the cooling off period works click here.
In the cooling off period
This is the thin red line when negotiation skills really pay off. We attend pest and building inspections for you but sometimes these inspectors can exaggerate their findings and it’s up to us as agents to explain in detail to the buyer what these reports really mean and the solutions that can be usually done. We attend bank valuations as well and nothing more can kill a transaction quicker when we achieve a great price for your home. There may be no comparables and the bank may not think it is worth that price all of this can add up to the buyer wanting to extend their cooling off period or even the buyer pulling out with lack of funds.
During the settlement
During settlement we find ourselves as an agent called in between the buyer and a seller when to help smooth out disputes such as;
- Rent back options and rental prices
- Pre-settlement inspection (sometimes things are not maintained or items left of the property)
- There may be an issue that is delaying settlement that we can help keep it on track.
This can be very stressful and even frustrating for sellers to handle while trying to move out themselves. This usually is a very emotional time and many illogical mistakes can be made during this key time. You can even be sued and charged penalty interest if you cause any of these problems in this period.
How an agent can easily disarm the bomb before it even starts ticking
A common example is an over the zealous building inspector commenting about brick growth. The first home buyer may freak out about building reports yet an active agent can smooth out this issue by explaining “how he is sold other properties down the road similar to this one that have the same issue.”
It can be quite simple to say and to do but if it’s churning in a buyer’s mind for days it’s enough for them to pull out because fear has overtaken them.
The simple things that we experience day in and day out and the solutions we have combat the end disarm situations before they arise truly can save you thousands of dollars and your blood pressure rising.
If you would like to keep your blood pressure from rising and save thousands of dollars please call us for a no obligation chat about your property and how we can take the stress out of the whole process.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.