Plan A - Selling a house without an agent

[anothertrekker]

Hi all,

This is my first time a) selling a house and b) selling without an agent. I've searched this forum and would appreciate more advice. Here's my situation:

1) I don't have a mortgage.
2) The house title is still held by the bank. When I asked for it from the bank, they said they are happy to safe keep it free of charge. It sounded fine to me but should I get it from the bank?
3) One potential buyer said he is willing to do a cash sale. I intend to ask for a 10% deposit. Should I ask him to pass the money to my lawyer or just direct credit it into my account?
4) I will only pass the keys to my lawyer when I receive the remaining 90% of the agreed sale price (but of course).
5) I intend to write all that I & the buyer verbally agree in & have both parties sign but is it legal if my lawyer is not there to witness?

What else should I be aware/careful?

Thank you for any advice/help in advance.

[ralf-nz]

I didn't do such a transaction yet here. However as you are already working with your lawyer on this they should give you proper advice!

[JandM]

I agree - these are things you need to be certain are legal, or the sale could fall through, or you could end up with liabilities you don't intend to take on. Doing without an agent is not the same as doing without legal advice.

[anothertrekker]

Totally agree. That's why I have a legal adviser before a real estate agent.

[ralf-nz]

Totally agree. That's why I have a legal adviser before a real estate agent.

So it is not because of the costs?

[anothertrekker]

It is because of cost, and if I could avoid using one, I would.

I just received info on how much a real estate agent charges to help me sell the house. Are you ready? $500 base fee (marketing fee etc) + 4% commission + 15% GST. If the house sale price is above $400k, kindly add another 2.5% to that.

So, if I decided to sell my house at 300k, I would only end up with 242500 in my pocket.

So it is not because of the costs?

[Duncan74]

It is because of cost, and if I could avoid using one, I would.

I just received info on how much a real estate agent charges to help me sell the house. Are you ready? $500 base fee (marketing fee etc) + 4% commission + 15% GST. If the house sale price is above $400k, kindly add another 2.5% to that.

So, if I decided to sell my house at 300k, I would only end up with 242500 in my pocket.

You're figures aren't quite right. Whilst it's still a lot of money, then at $300k, you would pay a total of $14,375 leaving you $285,625. (($500+300,000*0.04)x1.15). The GST is on the fees, it's not 15% of the sale.

[anothertrekker]

Whoa! Thank you so much Duncan. I have been bad at maths since my school days. Saved me from a massive heart attack, now it's just a small broken heart....

You're figures aren't quite right. Whilst it's still a lot of money, then at $300k, you would pay a total of $14,375 leaving you $285,625. (($500+300,000*0.04)x1.15). The GST is on the fees, it's not 15% of the sale.

[ralf-nz]

It is because of cost, and if I could avoid using one, I would.

I just received info on how much a real estate agent charges to help me sell the house. Are you ready? $500 base fee (marketing fee etc) + 4% commission + 15% GST. If the house sale price is above $400k, kindly add another 2.5% to that.

So, if I decided to sell my house at 300k, I would only end up with 242500 in my pocket.

I have known about the 4% thus the - but thanks anyway!

[MaryMc]

Speak to your lawyer - they will be able to supply you with a sales and purchase agreement and advise on conditions to include.

The deposit should go into your lawyers trust fund account.

Sign nothing until your lawyer has sighted.