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selling above listing price with competing buyers: is it legal?

Discussion in 'The Buying & Selling Process' started by Lily Beach, 24th Jul, 2016.

  1. Lily Beach

    Lily Beach Member

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    Hi all, I am selling in regional NSW and not using an agent. This is the third property I will have sold privately. In the past I have advertised as "offers over $xxxK" and have done well. This time though I have listed the property at a price and its advertised on the two main realestate sales websites as well as the forsalebyowner site.

    Here's the thing: - I had two offers on the same day for the listing price. Neither were made on the sale contract but i believe them to be genuine. There are two other very keen parties who have stated they'll be making offers in the next few days. I have let all parties know that two offers for the listing price have been submitted but not accepted.

    My questions then are: -

    1) Can I continue to receive offers and sell above the listed price without breaching consumer law (misleading advertising etc) resulting in a possible claim against me from a disgruntled buyer?

    I understand that its not SOLD until an offer is agreed upon, Form 66w signed and a deposit paid.

    2) Given the active interest and that it is likely that I will be receiving offers now above the listed price, should I change the listing price on the on the realestate sale websites? eg "POA"? or "Offers over $xxxK"? or if i do that, will I provoke the current buyers who are submitting offers?

    3) If a Form 66w is signed by the buyer at the time of making the offer, am I correct in believe that this does NOT override other possible buyer conditions that they may include in the contract such as "subject to finance / pest and building inspection?"

    Comments on any and/or all of these questions welcome!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  3. Big Will

    Big Will Well-Known Member

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    Yes you can sell over advertised price even with an asking price. If you have serious competition and someone wants to pay more than your asking price how can the law make the vendor accept the lower priced one as their advertisement wasn't correct.

    However if your REA is advertising it less than your authority (e.g. you said 500k and they are advertising it for 450k) then the REA is in trouble.
     
  4. Lily Beach

    Lily Beach Member

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    Thanks BigWill. Its a private sale - not using an agent
     
  5. Big Will

    Big Will Well-Known Member

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    Still if it is FSBO (for sale by owner) how can the law say you must accept a lower price?

    As you are not trained in selling real estate you are not governed by the same laws agents are.

    Say if I was selling a brand new ipad and listed it on gumtree for $500 and someone says I will give you $600, do I have to say sorry but I can only accept $500 as that is what I advertised it for? Of course not you can accept the $600, so why not 500k and 600k =D?
     
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    The limitation in NSW is that you cannot use the terms 'offers over' or the like as it was meaningless and open to rorting.

    There's nothing wrong with telling the prospective buyers to come forward with their best offer by 16:00 on Wednesday and you will advise of the outcome
     
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  7. Lily Beach

    Lily Beach Member

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    Big Will likes this.