Auction and Private Treaty Real Estate – Adelaide Real Estate Agent Vlog #093

Auction and Private Treaty Real Estate – Adelaide Real Estate Agent Vlog #093

October 10, 2019 0 By Luis Garrison


– There are two ways
residential property is sold in South Australia, by Auction
or Private Treaty sale. Auctions often grab the headlines, but Private Treaty sales
are the most common way property is sold in Adelaide. Private treaty includes
for sale with a price, best offer by, and expression
of interest style campaigns. Hi, I’m Marie McWilliam, an
Adelaide real estate agent with Harcourts WILLIAMS property, and in these videos I’ll look
at all things real estate. If you’re a buyer and you’re unsure about the differences
between the two processes, here’s what you need to know. A private treaty sale is where the seller, in conjunction with their agent, researches the market and sets the price or a price range they
want for their property. The seller then negotiates with potential buyers via their agent. Once a price and terms are agreed, the seller and buyer sign a
contract, and in most cases the process will enter
a cooling off period. In South Australia, the cooling off period is
two clear business days from when the buyer and
seller signed the contract and the buyer has received
the vendor’s Form 1 statement. This period is often when a building inspection
will be completed. If the contract is
terminated by the purchasers, purchaser exercising their
cooling off rights in this time, any deposit receiver over
$100 must be refunded in full. Normally buyers will pay
the full deposit amount the day after the cooling
off period has finished. In most cases, an auction
campaign culminates on the actual day of the auction, but can also be sold beforehand. On auction day, the seller
sets a reserve price, then potential buyers set the final price through the a competitive bidding process. The bidding process is
completely transparent, as everyone is aware of
what each other is bidding. You’re immediately aware of what other potential
buyers are prepared to pay. There are no cooling off periods, and the contract conditions
like deposit and settlement have to be negotiated before the auction. So whichever situation
you find yourself in when purchasing your dream home, make sure you’re well-prepared,
do your homework, and get advice if you need to. (upbeat music)