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Buying privately may not save you money!

17 Oct 2014 - http://www.rebonline.com.au/breaking-news/8265-agent-commissions-remove-sale-headaches

"HOMEBUYERS believe they can save money by buying privately rather than going through a property listed by an estate agent.

Unfortunately, that trick often works, according to Certified Practising REAL ESTATE AGENTchairman Geoff Baldwin.

Mr Baldwin said private buyers often believe that if the seller isn’t paying an agent then they should get a DISCOUNT on the sale price.

Unfortunately, according to Mr Baldwin, that tactic occasionally WINS.

“Buyers often negotiate a lot harder when they know a seller is not paying an agent and the unfortunate truth is that they usually succeed in buying lower,” Mr Baldwin said.

“When confronted with a lower offer from a buyer, private sellers tend to think that they are not paying an agent and hence are more likely to accept a lower price.

“Private sellers often run into difficulties when trying to assess the financial capacity of buyers, contending with ‘subject to sale’ offers, writing solid contracts, extracting meaningful DEPOSITS and many other aspects of ensuring a smooth, successful sales process.”

Mr Baldwin said listing a property with a proven, experienced negotiator cannot only justify the agent fees but in many cases will result in a sale price thousands, if not tens of thousands higher than sold previously."

The above is an extract from the article at:  http://www.rebonline.com.au/breaking-news/8265-agent-commissions-remove-sale-headaches (Real Estate Business, 2014)

Michelle Wang

Four C Realty