Buying a Property via Private Treaty

What is Private Treaty

Also known as a 'private sale', this selling method gives both the buyer and seller the most flexibility to negotiate price and purchase conditions.

Prospective buyers make offers on the property while the property is listed for sale on the market. Private treaty sales mean you have the option of attempting to negotiate the price or other selling conditions with the owner's agent.

There is no 'deadline' to a private treaty sale, but be aware that properties in high-demand areas can sell quickly. So, if you are interested in a property you should make enquiries with the Century 21 agent who has listed the property for sale.

Making an offer

Once you've found a property that meets your purchasing criteria, the negotiation process begins. The nature of such negotiations will differ, as different regions experience variances in demand.

Things to consider when making an offer:

  • Market value: By completing comprehensive research of the local market, you will understand what the property is worth.
  • Your budget: Know the maximum amount of money you can afford to pay for the property.
  • Loan pre-approval: Ensure you have completed your financial due diligence, including whether you will be able to afford your repayments should interest rates change or your employment should change. In addition, make sure you have your loan pre-approval from your lender in writing.
  • Legal advice: Obtain legal advice from your solicitor or conveyancer to ensure that you are fully aware of the contract you will be signing if your offer is accepted.
  • Whilst you may wish to make an offer slightly below the asking price to give you room to negotiate upwards, be mindful of going unreasonably low, as you risk alienating the seller.

Your offer has been accepted – what's next?

If the owner has accepted your offer, the Contracts of Sale are signed and a deposit of approximately 10% is made.

This method normally offers a cooling off period, however, some sellers request the buyer waive the cooling off period as a condition of the contract being signed. If there is a cooling off period, the buyer can complete their final due diligence such as legal, building/pest inspections and financial checks.