Selling Your Home Privately: 3 Cardinal Sins You Shouldn’t Commit

3 Sins Private Property Sellers Commit in AustraliaSelling properties is one of the most natural things in Australia. As a matter of fact, about 36% of Aussies have no plans to settle in their current residence and consider moving at some point. Many homeowners hire a licensed real estate agent while others sell privately.

Now, if you deal with buyers directly, more profits of the sale end up in your pocket. However, your motivation to get your property sold ASAP and move on might cause you to be imprudent. As it is a major financial decision, a single mistake can be costly. Here are some of the things to avoid.  

Under Pricing Your Property

Finalising your asking price is imperative. It sets the tone for negotiation and guides towards receiving an unfair bargain. However, you can just come up with a number based on gut-feeling nor guess the current value of your home.

Especially if you’re unaware of the real estate trends, you must have your property valuated first. Only pros can properly estimate how much your property is worth. You may spend some money, but it guarantees you wouldn’t agree to a price too low for your home.

Failing to Include Special Conditions of the Contract

Of course, the sale must have a contract. But as one property varies to another, you might want to include some special conditions to protect your best interests.

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Not that you want to outwit any buyer, but certain clauses could help ensure you’d get paid fairly and accordingly — which standard contracts may not always cover.

In QLD, NSW, VIC or whatever state you’re in, talk with a competent attorney specialising in property law for sound legal advice.

Using Profits as Sole Source of Deposit

And if you think you can just use the sale of your property as a deposit for your next mortgage, think again. While you can certainly use it to lower your loan amount, most lenders would require you to show proof of your genuine savings.

Profits from a sale of an asset don’t attest to your capacity to maintain a home loan, so you might want to provide the necessary paperwork to prove your ability to repay monthly.

Privately selling your property sure has unique advantages, but it’s not without challenges. Exercise your due diligence before taking any step.