While the Cooma real estate market might not be booming like Sydney and Melbourne, it is certainly starting to feel some radiant heat from the two hottest cities on the Australian real estate map. With a combination of strong demand generated by new arrivals, the drying up of cheaper investment properties and infrastructure projects creating new employment opportunities, it’s a good time for sellers to take a look at the pitfalls of selling in a more competitive market.
As competition for properties increases, it can be a dog eat dog world with only the quickest and best-prepared buyers getting the house they want. But as the sharks circle and the feeding frenzy begins, what should a seller look for to make sure they won’t face a fallover from a unprepared and hurried buyer?
A fallover is a term used in the industry for a buyer who withdraws from a sale after an offer has been accepted but before contracts are exchanged. This can be a major problem if you, as the vendor, have made an offer on another property based on the sale of your home.
Fallovers happen when buyers are in a hurry to purchase in a “hot market”. They’re trying to beat other buyers and any price increases. Even if they don’t have their finance locked in place or a firm sale agreed on their own property, it’s tempting to “jump the gun” on a purchase before the market rises. Of course when a decision is made in the heat of the moment there’s, always a chance of “buyers remorse”, another reason a sale can fallover.
Having an experienced Real Estate Agent who can qualify a buyer can make all the difference between a solid outcome or possible heartache. Ask your agent for details of the buyer’s finance. Does your buyer have a property to sell first? Has that sold? Do they have a firm offer in writing from their lender? Are they ready to move? A good agent will always be able to answers these questions and make sure you’re getting a real offer that will cement your move.
An experienced agent should also ask whether your home will pass a building and pest inspection (another classic fallover reason). If you have a known issue, it’s best to have it on the table from the outset rather than it becoming a snag in negotiations that will risk a potential sale. You may need to price your house with this in mind and a good agent will pass this information onto the buyer. Rather than giving in to a request for a reduction in the sale price, your agent should advise that the property has been “priced accordingly
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