When do you tell the world that you have sold your own home?
It appears that many of you, and a good proportion of agents, want to jam on the ‘under contract’ sticker on the For Sale Sign and splash the same message all over the online property sites before the weight challenged lady actually sings.
What do I mean by that?
Even when we have shaken hands in agreement with a buyer and then signed the contract, in the vast majority of cases, there are conditions that have to be satisfied on the contract before the buyer is actually ‘locked and loaded’. Plus there is a mandatory cooling off period for buyers who have purchased under private treaty, rather than auction.
If a buyer purchases under Auction rules, whack up the SOLD sign. They own the property, purely waiting for completion or settlement date.
In some states this ‘locked and loaded’ milestone is called deeming the contract ‘unconditional’ or ‘exchanged’. This is the moment where, say, the buyer’s finance is approved or they are satisfied with their building inspection or both, or some other condition of purchase has been satisfied.
This means the buyer is now fully committed by law, and trying to leave the contract would put the buyer’s deposit at risk and followed up by possible legal action instigated by the seller.
Prematurely announcing to the world that the deal is done is a common mistake made by sellers and agents alike.
The big question is – What happens if the buyer pulls out because a condition of the contract could not be met or satisfied? Your home or property is back on the market!
If you have ‘SOLD’ or ‘Under Contract’ plastered everywhere, how many potential buyers have you scared off because they thought the property was actually sold- done and dusted?
Until any contract is locked in, you should and must continue to take enquiry from potential buyers just in case the worst happens – it falls over.
Simply tell them that you have a conditional agreement and will contact them should it fail to complete. The majority of buyers will understand this and be encouraged by the fact that someone else thought the property was good value and laid down an offer. This is the herd mentality at work in the seller’s favour.
I call this, ‘placing buyers on the bench’. It is a vital tactic whether selling your own home privately or using an agent.
If your current contract falls over you can go straight to the list of buyers you spoke to during the ‘conditional’ period.
Yes, it is very exciting when that deal comes together, but put that itchy ‘Sold’ finger in your pocket until that contract is set in concrete.