Homebuyers who try to negotiate a private sale with a seller in the hope of getting a reduced price on the property may find, to their regret, that they are mistaken. Firstly, a seller selling his property privately has most likely taken into account the amount that he would save on agents' commission and included it in the price anyway.
There are other potential pitfalls for buyers, the biggest of which lies in the voetstoots clause. An untrained eye may easily overlook hidden and latent defects, which may require expensive repair at a later stage. Estate agents normally act on behalf of sellers in property transactions, however agents are also bound by a code of conduct, which affords buyers a certain amount of protection against one-sided contracts.
Private buyers run the risk of not getting what they thought they were paying for because of loopholes in the sales agreement. A buyer also has little recourse when the seller absconds with fittings such as blinds, carpets and even stoves if there is no provision for such things in the offer to purchase. Unwary buyers signing a private sale agreement may be in danger of losing their deposit if the sale is cancelled. Such contracts may contain unrealistic requirements regarding the period allowed to secure a loan or to effect transfer, which may place the deal, and the buyer's deposit, at risk.
Buyers should thus carefully weigh the perceived benefits of a private sale. They should ask themselves whether they really are saving money and whether it is worth running the risk. Buyers should keep in mind that trained estate agents, especially those who are area specialists, will help them to make informed decisions by supplying pertinent information and should protect the interests of both seller and buyer not only during the sale but during the whole transfer period.
