By Mark Hay
Question: What's the risk in selling my home myself?
Answer: There are many areas of risk. Some of the more obvious are:
The correct legal documentation being formally written up and executed correctly so in the event of problems arising on the road to settlement, the purchaser cannot walk away from the deal, claim damages or sue.
Lack of full understanding regarding what is being sold, which can include restrictive covenants, caveats, rights of way, sewer lines and road reserves. For strata-titled properties, the list is even more daunting, including strata by-laws, special by-laws, management statements and pecuniary interests. In the event one or more of these factors are not presented in the correct manner, the implications can be disastrous, to the point of termination of the contract, delayed settlement or even damages. You also risk underselling the property for its true value.
Question: What's the legal benefit of using an agent?
Answer: Agents are trained to conduct relevant research to ensure the property is presented legally and avoid any of the above dilemmas. But more importantly, the drafting and execution of the contract is conducted to ensure both parties' legal obligations are looked after and reflected accurately within the written documentation.
Question: Can't the private sellers market their properties just as well as an agent?
Answer: Agents have the experience and knowledge as they are in the market every day. Also, the huge network of marketing available, including databases, cross-selling from other stock, conjunctional dealings with other agents, REIWA website access, agent websites, pools of buyers, agents' own buer lists, prominent agent newsletters, signage and much more, all contribute to driving far more buyers to your property. In many cases, all advertising costs are cheaper when booked via agents. When problems arise, as they often do, having a mediator can smooth the deal over and keep it on track. There is a perfectly good reason why DIY home sales make up less than 2 per cent of the Perth property market. We live in an age of specialisation; your own home is probably going to be the greatest single-value transaction you would ever handle. Why leave it to chance?
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