Can we all do without estate agency practice in a property deal? Part 4
The case of B and C. Let us revisit the buyers.
A – Cash Buyer
B – 90% Loan Buyer
C – Foreigner
B is a 90% 1st time house buyer. He can obtain loan, and in fact, has already submitted his particulars to the banks. It usually takes about 1 week plus for the bank to come out with an offer letter. So, he has to work on this timing so that he could close the deal ahead of somebody else.
Now, imagine B gives a higher offer than the cash buyer A. If seller Mr V is not in a rush to accept A’s offer, B has a higher chance to buy this property than A. If such is the case, A might get to know about it, and thus push his offer up to match that of B. All in all, Seller Mr V will get a better deal if he has more buyers like ‘B’.
Now, you get the idea. It is how many “MrBs” that can push up the price. Hence, this is the most crucial determinant of the deal for the benefit of Mr V.
Therefore, going directly to lawyer’s office might not have the advantage of “PRICE” because lawyer is not the profession to look for buyers for Mr V. It is not his core business. Estate agency practice is!