What is the process that needs to be followed to purchase a property through an agent?

Firstly find a property that you wish to purchase – a good start!!

Ask the agent what the process being used for the sale and the process for making offers on a specific property. This should be clear in the marketing of the property. There are four ways of selling real estate in South Australia.

1. Bid and buy at auction under auction conditions

• This requires you or your proxy to bid on the day.

• You have to register to bid at auction.

• If you are the highest bidder at the fall of the hammer, you are the successful purchaser and will need to pay a 10% deposit unless a variation to deposit is agreed prior to auction.

• Settlement on the agreed date unless a variation is approved prior to auction.

2. Private Treaty - Negotiation

• This is normal way to sell with a single price or price range.

• No more than a 10% range can be used and no words like “offers around” or “offers above” etc are allowed to be used.

• All offers for a property can be submitted (any value and conditions) and should always be presented to vendors.

• Vendors do not have to except any offer submitted without declaring a reason.

• Vendors have a right to accept an offer, reject an offer or counteroffer. This process is a “treat’ process and can be in negotiation until an acceptable price is reached and the conditions of sale are agreed to by all parties.

• A best and final offer process can be used to the sell a property which requires purchasers to submit their “best and final” offer when requested.

• If multiple offers from different parties are presented for a property then a request for all parties to present their single best and final offer should occur. This should however, be only requested once from all parties and not turned into a “Dutch” auction.

3. Expressions of Interest

• This method is used to register buyers interest in a property with indications of the price and conditions they would be prepared to present to the vendors.

• There should always be a closing date and one of the above processes should be used as method of finalising the sale announced.

4. For sale by Open or Closed Tender

• In this method of sale the first decision that has to be made is if it as an open or closed tender process.

• An open tender is where tenders are submitted through the agent in an open tender format on or before a closing date.

• A closed tender is where tenders are submitted through a secure tender box or a secure platform on or before a specific date.

• The vendors are then asked to select their preferred tender and the successful party is advised.

• A vendor does not have to accept any offer through this process should they wish not too.

Should you ever have any questions with regards to the above contact your agent, Business SA or give us a call and we will try to assist.

Roger Smith

Over 17 Years as an Agent

Extensive knowledge of the Fleurieu Pennisula

Avid Golfer

Husband to Deb, Father to Amy 10 & Charlie 9

Monster Car Enthusiastic