NSW Buying from owner without third party real estate agent

I recently inspected one property that was advertised on realestate.com. While attending the inspection I realised that the owner of property himself had put the advertisement for sell.

Has anyone purchased property from such individuals who register themselves as real estate agents ? Are there any risks associated with such purchases or what are the thing to be carful about ?

 

They either must be an actual agent, or they're using the services of a DIY agency. Private sellers cannot advertise on realestate.com.au

 

Yes, seems they are using the services of a DIY agency (Buy My place).

Are there any risks associated with such purchases or what are the thing to be carful about ?

 

Nope, no more/less risks at all.
Once the terms have been agreed an agent will just send both solicitors the details.. (Sales Advice) and then the solicitors will do the rest. The only difference in your case will be the deposit sits in their solicitors trust account instead of the agents trust accout...Simples

 

Friend sold their house privately. Paid a third party to list on realestate.com.au. Had their solicitor draw up the contract and the deposit was paid into the solicitor's trust account.
Marg

 

It's just a way to avoid paying agents fees and commissions. It's legitimate.

 

All you would be doing is cutting out the several people in between the title holder and the new title holder ..

I have done this before when I was buying blocks of land in a small country town 70 klms from Brisbane ,then putting a removal house on the block ..

Most of those deals after the solicitors we use said go ahead,were done at the front bar of the local hotel over a cold beer ..Never ever had a problem ,if the contract one would use covers all the shadows that sometimes surface after the ink is dry..imho..

 

thanks all for your response. It surly helped !!

 

The only issue we have when buying properties that are for sale by owner is that the owners tend to have higher price expectations - about 5% higher than market value. If your research shows that the price is market or below, then go for it!

 

One of my friends recently sold his house using Buy My Place. It was a $1m+ house, so he said he saved a lot of money doing it that way. Doesn't seem to have struck any problems.

 

How does he know that a top agent wouldn't have negotiated a higher price for his home?

 

Very true. I've been watching a house in my area that's listed for sale thru Buy My House, and I reckon it's about $350k overpriced. No wonder it's been on the market for about 8 months now, whilst everything else is sold within a couple of weeks.

 

It can go the other way too. A busy agent may not have incentive to get the seller an extra couple of thousand.

 

Mmmm. I guess he'll never know now. He's a pretty shrewd guy, so I imagine he would have negotiated well.

 

Not too much to worry about. From a lending front some lenders have specific valuation requirements where if the property isn't sold through a third party real estate agent they will require in all circumstances a full valuation with the valuer inspecting the property - whereas if it were sold via an agent they would have just used a computer estimate/taken the sold price at face value.

Not a huge deal - but it can mean you can be tripped up if its an owner selling their own property and you were wanting to avoid a full valuation due to the property being distressed/significantly damaged. (ie you were buying to renovate to add value)

 

One of my relatives property the property privately through Buy My Place and everything went smoothly without any hassles