Private sales rule Victorian property market

Although auctions grab the headlines, private sales are by far the most popular way to buy and sell homes in Victoria.

Around three-quarters of all property in Melbourne are sold by private sale.

Director of Consumer Affairs Victoria Claire Noone said there were important facts buyers and sellers should know about private sales.

“The contract of sale can be conditional,” Dr Noone said. “This means that, if the seller agrees, the buyer can make the sale subject to obtaining a loan, a satisfactory building inspection report, or other conditions.

“If you’re making an offer to buy by private sale, we recommend you write into the contract a date by which your offer will lapse, so you will know whether the seller has accepted your offer by a time that suits you.”

For private residential sales and those of rural properties of less than 20 hectares, a buyer has three business days to change their mind – although there is a small financial cost for doing so and it is not possible in some circumstances such as at auctions.

“Buyers and sellers should not rush or be pressured into making hasty decisions about property contracts,” Dr Noone said.

“You will feel more confident about the outcome if you make an informed decision – carefully read the contract and ensure you understand the terms and conditions of sale.”

Consumer Affairs Victoria has seven new videos to help home buyers and sellers prepare for an anticipated stronger property market this season.

For buyers, the 30-second videos cover pest and building inspections, knowing how much you can afford, the auction process and understanding private sales.

For sellers, there are videos on shopping around for agents, marketing your home and understanding fees and commissions.

Visit Consumer Affairs Victoria’s YouTube channel to watch the videos. There is also detailed information about buying and selling property on Consumer Affairs Victoria’s website, at www.consumer.vic.gov.au/realestate.

For updates, follow Consumer Affairs Victoria on Twitter and Facebook.

Courtesy of REIV.com.au