essentially three ways to sell your home.
and Negotiation By Auction By Tender BY OFFER AND NEGOTIATION Most homes
are still sold this way, whether through and agent or privately. You set an asking
price, put your home on the market and if a buyer is interested they make an
offer. If you’re using a real estate agent and someone wants to make an offer
the agent usually contacts other interested buyers in case they also want to
make an offer - so you end up with several offers at once and can therefore
usually more or less in standard format but unless you are using an
international reputable firm with years of legal experience and backing, it
would be best to have a lawyer check it out. If you want to accept, you just
sign the form. But if you want to negotiate you go back with a ‘counter offer’
by putting your change on the form and then signing it.
buyer signs the change the deal is done - or they may come back with another
counter offer themselves. This process is repeated until you and the buyer
agree on the price and all the conditions - or you can stop at any stage. Your
real estate agent will act as the go-between and undertake negotiations on your
behalf – something they are well experienced in.
you and the buyer have signed the form and initialled all the changes, the
agreement becomes legally binding. Many offers are also conditional i.e subject
to some or other event, such as the buyer obtaining a bond, you repairing the
pool etc etc.
sellers prefer this method as there is no pressure on them and they can take their
time to consider offers and wait for the right price. The seller can therefore negotiate
until they get a deal that suits them.
SELLING BY AUCTIONTo Top Not very
popular in South Africa,
auctions are mostly used as a method of sale by Banks and so on for repossessed
properties or sometimes if a property is unusual or hard to value because it
has extremely special features, such as a phenomenal view.
whereas banks almost always used the auction route on distressed
they have now realised the benefits of proper marketing and have rather
appointed agencies to market these properties for them.
advantages of selling by auction is that the sale is unconditional, however
many sales are lost because the buyer does not have the opportunity to
negotiate. Additionally, auctions are a common hunting ground for bargain
seekers – not the kind of buyer you are looking for.
See the article
on Auction Selling for further information. If you feel this could be
your solution, remember that PROPERY NETWORK has built strong relationships with specific autioneers and we can offer you full auction services via this network. SELLING BY TENDERTo Top Tenders
give the seller a chance to see what interest there is in their home, without
having to put a price on it. Tenders can also be useful if you have a set date
you need to sell your home by, but
they generally work best for special or unique properties.
buyers are invited to submit written offers, usually by a set date. You are not
obliged to accept any of the offers, and can choose to negotiate with any of
the people who have made an offer if you wish. These offers are normally
submitted to your appointed agent who will open them with a witness or
alternatively, the agent might appoint independent auditors to do this on their
home is likely to attract a lot of interest, a tender may help you get the best
price for it. This is because potential buyers don’t know what other people may
offer and tend to put in their best price with few if any conditions. On the other
hand tenders can limit the number of people who are prepared to make an offer -
some are put off by the closed nature of the tender process.
you feel you would like to use this option, please do contact us and we can
discuss it further.
Back to Sellers Section For Finance issues go here, or check out the Legal