with Bruce Cortesi
from Planwise Financial Services
With the recent huge increase in prospective purchasers flooding our local market, it's of concern that we've seen some sales practice we would call to question.
For example, an agent saying: ‘We have buyers wanting to purchase your home and have a Sale and Purchase agreement for you'.
In some cases the seller has been offered on average 67 per cent more than what they purchased the house for two years ago.
I suggest all sellers and buyers check out the Real Estate Agents Authority website, which makes the following points for sellers.
The agent must have an agreement to sell your property before any Sale and Purchase agreement is entered into.
The agent must provide you with a copy of the agency agreement approved guide and ask you to confirm in writing that you have received it.
They also must also advise you to seek legal advice.
What about your current mortgage? Have you considered break fees for discharging your mortgage early?
And what about finding another property – you will then be a purchaser and in the queue at open homes and auctions.
Also, there's allowing time to secure finance for your next home – currently the lending industry is experiencing high volumes and you should allow for a minimum 10 working day turnaround.
In some cases the seller did not receive any agency agreement or guide, and the agent still expected to be paid full commission. If you're considering selling, there are a number of very reputable real estate agents in the Bay of Plenty region.