Selling Your Home In A Falling Market – Tips For Property Owners
As property prices continue to decline due to interest rate hikes, commercial property owners must be cautious when selling their properties. The Ramsden Lawyers Commercial team offers tips on what sellers need to know to prepare for prospective sale contracts and protect their rights during negotiations.
Falling Property Prices and How They Affect Sellers
According to CoreLogic Daily Home Value Index statistics, property prices have dropped by 8.4% since the Reserve Bank of Australia began raising interest rates in May 2022. Between October and December 2022, over 80% of suburbs across the nation saw a slump in the value of houses and units, a significant change from the 10% recorded a year ago. The RBA is not expected to halt its regular rate increases anytime soon, making it a buyer’s market.
The Importance of Getting the Right Advice for Sellers
Sellers must get the right advice on prospective sale contracts, especially in today’s economic climate. An experienced property and conveyancing lawyer can review the terms of a sale agreement and ensure unreasonable conditions have stayed within the fine print. By working with an experienced property and conveyancing lawyer, sellers can have peace of mind knowing that their interests are protected, and that the sale agreement is fair and reasonable. This can help to minimise the risk of disputes or legal issues arising during the transaction and increase the chances of a successful sale. Ramsden Lawyers’ Commercial team also advises hiring an experienced property lawyer to act on your behalf in the sale to ensure the buyer will only terminate the contract if it is reasonable and done strictly per the contract terms and conditions.
What Should Sellers Look Out for in a Competitive Market?
When the real estate sector experiences a price correction, buyers can negotiate a cheaper price or include special conditions and clauses in the contract of sale. Banks are also taking a more conservative stance on lending, making it more important to watch for special conditions required by the buyer. Deadlines are crucial; parties must scrutinise and note critical dates in the selling process.
The Importance of Deadlines in Property Sales
In Queensland, time is of the essence, and if a time is specified in the contract, the parties must comply. The penalties for missing such deadlines can be significant. In any real estate transaction, some many critical dates and deadlines must be met to ensure a smooth and successful sale. These deadlines can include everything from the date the buyer must secure financing to the deadline for completing inspections and due diligence. It’s crucial for both buyers and sellers to carefully scrutinise and note these critical dates in the selling process. Failure to meet these deadlines can result in costly delays, legal complications, and even the cancellation of the sale. Both sellers and buyers need to obtain adequate legal and financial advice before committing to timeframes and deadlines in a contract. An experienced property lawyer can develop a step-by-step plan for each stage of the sales process and ensure the contract adequately covers all aspects of the sale.
Protecting Your Rights in a Competitive Market
Sellers need to check with an experienced property lawyer before signing anything. Ramsden Lawyers’ Commercial team advises having a lawyer on hand throughout the purchase process to reduce the risk of disputes arising when one party still needs to meet their obligations. Sellers have several routes for recompense if a sale is terminated. In a sliding property market, sellers must protect their rights and interests. By working with an experienced property lawyer and being proactive in their approach to the market, sellers can increase their chances of a successful sale and a favourable outcome.
RAMSDEN LAWYERS – HOW WE CAN HELP WITH MATTERS INVOLVING CONVEYANCING
When selling property, having the proper legal support to protect your interests is crucial. At Ramsden Lawyers Commercial, our experienced property law experts can provide the guidance and support you need throughout the purchase process, reducing the risk of disputes arising.
If a sale is terminated unfairly or illegally, sellers have several options for recompense. Our lawyers can help you pursue a buyer for damages, including legal fees or commissions owed to a broker or selling agent. We can also help you recover the difference between the sale price and what you could have received if the initial buyer had fulfilled their obligations under the contract. In some cases, we may recommend taking proceedings for the ‘specific performance’ of the contract, which can force the buyer to complete the deal.
In the event of a breach of contract by the buyer, you may be entitled to claim any other reasonable costs or losses incurred from selling the property.
At Ramsden Lawyers Commercial, we are committed to providing our clients with trusted advice and clear instructions to negotiate the best possible deal for their interests. If you need assistance with a conveyance or general property law advice, book an appointment with our Property and Commercial Department.
We also have a dedicated team of lawyers who specialise exclusively in property disputes. If you’re involved in a dispute and need advice, our Litigation Department can help.
Our lawyers are available for appointments at all our conveniently located offices in Gold Coast, Brisbane, and Sydney.