Author Topic: Buying/Selling houses  (Read 1596 times)

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oz diva

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Buying/Selling houses
« on: October 25, 2011, 06:19:42 AM »
Here in Melbourne we mostly buy and sell houses by public auction on the street in front of the house. The auctioneer puts on quite a performance. The bidders and most of the neighbours and other interested bystanders stand around the street and the auctioneer points out the legalities and the attributes of the house and the neighbourhood. Once bidding starts, it's a good idea not to wave at a friend or scratch your nose.

Usually if bidding is stalling, the auctioneer will refer the bid to the vendors, disappearing inside for a bit, then reappearing and announcing that the property is now on the market (or maybe not) and hopefully the property will be sold or passed in. If the latter happens they negotiate with the highest bidder. Even if a resolution is still not found, the property is usually sold during the next few weeks.

Here's one in action http://www.youtube.com/watch?v=BaBYXIe8INg&feature=related

They're fun to go and watch if there's one nearby and we often take overseas visitors to see one for a bit of local colour.

We've bought both our houses this way and sold one. It's nerve wracking, we nearly had a friend buy our old house. When we were buying our current house we nearly had it $20,000 less, but at the 3rd call someone else piped up and we started off again. I like it, because it's all out in the open and mostly you buy a house for what it's worth. It's hard not to get too emotinally involved though. You have to set a firm limit and stick to it.

How is it done where you are?

Victoria

Larrabee

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Re: Buying/Selling houses
« Reply #1 on: October 25, 2011, 06:24:09 AM »
Wow that's really interesting, what an exciting way to buy a house, although I don't know if I could handle the stress!

Here in the UK, there are a few ways.  You can sell property at auction but this tends to be a last resort if you can't find a buyer and they sell for very low prices generally.  The auctions are public but not outside the house!

Generally, houses for sale go on the books of estate agents, they advertise them and potential buyers arrange viewings through the agent.  The agent works entirely for the seller.  Generally, sellers show their houses themselves, not the agents, unless the house has been repossessed or is empty for some other reason.

When an offer has been made and accepted (the asking price is just a guide for starting negotiations) both parties engage a solicitor and then the process can take anything from a few weeks to months depending on how long the 'chain' is!

oz diva

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Re: Buying/Selling houses
« Reply #2 on: October 25, 2011, 06:27:42 AM »
I forgot to say that the house is open for viewing for about 3 weeks prior to the auction. Usually twice a week for about an hour. The real estate agent should be there for the viewing.

Victoria

Thipu1

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Re: Buying/Selling houses
« Reply #3 on: October 26, 2011, 11:00:42 AM »
That is interesting and very different from the way things are done here

Normally here, everything goes through a real estate agent even if the place has been foreclosed and is in the possession of the bank.  there are homes listed as 'for sale by owner' but most people find that way too much trouble. 

oz diva

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Re: Buying/Selling houses
« Reply #4 on: October 26, 2011, 09:57:24 PM »
Perhaps I didn't explain it well enough, but the auction process is managed by the real estate agent.

Victoria

Bluenomi

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Re: Buying/Selling houses
« Reply #5 on: October 26, 2011, 10:42:44 PM »
I find the whole lockbox/any agent can wander around your house thing odd in the US.

Here is OZ one agent or agency sells your house. They are the only people who show it, usually at an open house where anybody can turn up at a set time to view. If you want to view or buy the house you have to deal with them and the seller only needs to deal with that one agent who get all the commission.

In Canberra we have less auctions than Melbourne, more are private treaty sales but auctions can be popular since they apparently get you a better price. Sometimes they are on location, othertimes they are held at the real estate agency or at a funciton venue if they are doing many properties at the same time.

kareng57

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Re: Buying/Selling houses
« Reply #6 on: October 26, 2011, 11:40:51 PM »
I find the whole lockbox/any agent can wander around your house thing odd in the US.

Here is OZ one agent or agency sells your house. They are the only people who show it, usually at an open house where anybody can turn up at a set time to view. If you want to view or buy the house you have to deal with them and the seller only needs to deal with that one agent who get all the commission.

In Canberra we have less auctions than Melbourne, more are private treaty sales but auctions can be popular since they apparently get you a better price. Sometimes they are on location, othertimes they are held at the real estate agency or at a funciton venue if they are doing many properties at the same time.

In Canada, sellers can choose either exclusive-listing, or multiple-listing.  "Exclusive" means that only agents affiliated with that particular agency can show the house.  "Multiple listing" means that all agencies in the neighbourhood have the freedom to show the house, and present offers for it.

The commission is usually lower for Exclusive - but it also means that the place has less exposure.  Unless it's an extremely hot market, most vendors do choose Multiple Listing - along with the almost-inevitable phone calls that an agent wants to show the place in a half-hour... :-\  It's not fun, but it's something that most vendors have to accept if they want the place to sell relatively quickly.  Open Houses are quite common here, but apparently the percentage of sales that originate from an Open House is pretty small.  A lot of people who look through Open Houses are not quite ready-to-buy but are scouting out the area, and for the realtor it's good for drumming-up future business, even if not for that particular house.

Auctions here are pretty rare except for (a) a very high-end place, or (b) when the municipality is selling the place for taxes.  Tax sales almost never actually happen, it's just a technicality that the notice has to be made.

Ereine

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Re: Buying/Selling houses
« Reply #7 on: October 27, 2011, 09:15:11 AM »
I believe that the multiple listing thing isn't possible in Finland, though I think that it's been discussed. Selling your own house is apparently very easy, there's a lot of public discussion at the moment about how real estate agents supposedly have too big commissions and many people are saying that you don't actually need them for anything. There are a few national real estate listing websitea where everything is listed, selling a house without listing it online is probably very difficult. 

CLE_Girl

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Re: Buying/Selling houses
« Reply #8 on: October 27, 2011, 04:10:26 PM »
I find the whole lockbox/any agent can wander around your house thing odd in the US.

Here is OZ one agent or agency sells your house. They are the only people who show it, usually at an open house where anybody can turn up at a set time to view. If you want to view or buy the house you have to deal with them and the seller only needs to deal with that one agent who get all the commission.

In Canberra we have less auctions than Melbourne, more are private treaty sales but auctions can be popular since they apparently get you a better price. Sometimes they are on location, othertimes they are held at the real estate agency or at a funciton venue if they are doing many properties at the same time.

In Canada, sellers can choose either exclusive-listing, or multiple-listing.  "Exclusive" means that only agents affiliated with that particular agency can show the house.  "Multiple listing" means that all agencies in the neighbourhood have the freedom to show the house, and present offers for it.

The commission is usually lower for Exclusive - but it also means that the place has less exposure.  Unless it's an extremely hot market, most vendors do choose Multiple Listing - along with the almost-inevitable phone calls that an agent wants to show the place in a half-hour... :-\  It's not fun, but it's something that most vendors have to accept if they want the place to sell relatively quickly.  Open Houses are quite common here, but apparently the percentage of sales that originate from an Open House is pretty small.  A lot of people who look through Open Houses are not quite ready-to-buy but are scouting out the area, and for the realtor it's good for drumming-up future business, even if not for that particular house.

Auctions here are pretty rare except for (a) a very high-end place, or (b) when the municipality is selling the place for taxes.  Tax sales almost never actually happen, it's just a technicality that the notice has to be made.

The US is pretty much the same as Canada, not sure about the Exclusive vs Multiple as I've only seen Multiple.  Both the buyer and the seller can have an agent, its not required but it makes it easier.  I've never sold a house, but I bought mine a year ago and the process went something like this:

1)  find a house you like your agent submits an offer which is either accepted or countered. 
2)  the seller and the buyer agree on a price
3)  sign a contract which stipulates any pre-sale actions
         Pre-sale items include:  financing, an inspection and depending on the loan type an appraisal
4) buyer gets financing and is satisfied with the inspection (and the seller has fixed any problems found during the inspection) and the bank approves the appraisal 
5) Meet with Title company, may include Lawers depending on the state
6) Sign title and hand over down payment (0% to 30% or higher, depending on the loan type)
7) Get the Keys!!

Typically the seller arranges comission for the sale and the buying and selling agent neigotiate how much each get.  One thing I learned was if you go to an open house and you don't put an agents name on the sign in you automaticly have to use the selling agent for any transactions on that house.  Our agent made sure to stress that.

Its a long process, it took us 3 months from the time we found the house we liked to getting the keys. 

I'mnotinsane

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Re: Buying/Selling houses
« Reply #9 on: November 02, 2011, 06:44:17 PM »
In the US when people attend auctions for an expensive item like a house they might have to bring a cashier check for a certain amount (maybe $5,000) to even be allowed into an auction.  It ensures only serious buyers will attend. 

If anyone in the neighborhood/aware of the sale can attend, how do you keep people who have no intention of buying from driving up the price?

Slartibartfast

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Re: Buying/Selling houses
« Reply #10 on: November 03, 2011, 02:27:34 AM »
Does anyone else bury statues of St. Joseph upside-down in their yard to help sell a house, or is that just Americans?