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Buying a house: Auction Vs. Private sale – Part 3

by Chris Lang on June 24, 2007

What “For sale by private bid” means

There is also a relatively new thing, called “For sale by private bid”. It means that the house is advertised with asking price, to give buyers some idea what seller wants for the house. There is also a day when the bidding closes. Whoever is interested, makes his bid in the agency before the closing date, then seller reviews all the bids and chooses the highest one. Agency gets in touch with that buyer and asks him to confirm his offer, from there on its like private sale.

Buyers like this way of purchasing property because less pressure is involved than in auction. Sellers like it because it has a closing date and drives buyers to make up their minds.

Private sellers

Some people choose to not use the estate agents when they sell their property. The most common reason to do that is to save on agent’s commissions. Also, people don’t like the pressure agents put on them to sell the house, because to them no sale means no commission.
For some buyers a reason to choose private seller is that they believe private seller is more honest about the property.

If you are looking for private seller, here are some useful links:

http://www.privaterealestate.net.au/

http://www.zeroagents.com.au/ – this site has a calculator that gives you an idea how much seller saved on agent fees

{ 1 comment… read it below or add one }

russ@Beaufort SC Homes December 7, 2010 at 1:09 pm

Good advice. Most buyers do not take the time to learn what it takes to make a good purchase.

Wish more buyers were informed by articles like this.

Thanks,

Russ Fielden
Broker-In-Charge
Southern Coast Realty
Beaufort, SC 29907

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