it may as well be another language – for majority of the population “real estate” talk can go in one ear & out the other. But why does it need to be so hard? truth is, it doesn’t but legislation does create a few obstacles for saying what we really want to say so that you can understand it.
i thought id take the time to just break down a few common phrases out there in the market place that drive buyers insane
my personal favourite is the method of sale – best offers by a date (unless sold prior)
this basically means we are putting a cut off date to create a sense of urgency for buyers and also to bring it to a head for the owner but if we get a really good offer before this date then we will sell it anyway.
auction with no advertised price
it’s either a really trick property price with no comparable sales in the area so we honestly, just want market feedback or it could go absolutely bananas and we don’t want to put a price on it and shoot ourselves in the foot
legally, this figure can be 10% higher than the advertised price and can be amended at any point during the auction
best & final offer
when we say this we aren’t joking, to prevent any buyers feeling as though they are engaging in a dutch auction we must take caution to not go back and forth in multiple offer negotiations. i like to describe this price as your absolute maximum and that you would walk away from the property for a dollar more.
this is one for the sellers – when an agent mentions the Form 1 most owners offer a blank expression however, its something not to take lightly. It’s a legal document comprising of all searches relative to the property including all relevant council documentation. not only does this document formalise the sale and begin the cooling off period but if not prepared correctly by a qualified conveyancer can offer loop holes to the purchaser and a hefty fine for the owner and agent.
two words that buyers dread to scroll down and see on a property they have just fallen in love with. to be under contract means that an offer has been accepted, contracts exchanged & deposit paid but with conditions still to be met. majority of the time these conditions are a standard finance clause, possibly subject to the settlement of another property or the sale & settlement of another property which can take up to 30 days. you may have also noticed that not every agent marks their listings as under contract online or on the sign – there is no legal requirement around this, it comes down to individual choice.
we don’t mean to make it confusing, believe me sometimes its just as hard for us! Just make sure you ask lots of questions, after all it is one of the biggest financial & emotional investments you will ever make (no pressure).