By GEORGIA WESTGARTH
ROADSIDE signs advertising homes with no deposit are popping up around Doveton and Dandenong but real estate agent Gavin Andrews advises steering clear.
A sign nailed to a power pole on the corner of Lacebank Street and Power Road in Doveton opposite Linden Place has been there for several weeks and Mr Andrews from Barry Plant in Dandenong said the practice is unethical.
“I believe its people trying to self-promote their home because certified real estate agents would not do that,” he said.
Mr Andrews has been in the real estate business for 25 years and thinks this type of advertising maybe for a home sold under vendor’s terms which means home owners don’t have to deal with real estate agents.
“Vendor’s terms was quite popular around 40 years ago and means the purchaser is dealing directly with the home owner and a contract is written up by solicitors.
“Both parties solicitors agree and the purchaser pays the full amount to the vendor in instalments.
“This can lead to higher payments made over a shorter period of time compared to paying the full amount through a home loan secured by a mortgage,” Mr Andrews said.
This type of sale means real estate agents aren’t paid commission and in turn is not a popular method among estate agents Mr Andrews explained.
“It’s not popular now and agents don’t want to get involved because there’s not much gain for them,” he said.
Describing the sign as what could be a “backyard operation“ Mr Andrews said a deposit means commitment.
“They may have a contract written up but unless you’ve got a deposit there’s no real commitment there from the purchaser, so I would think these people are either a financial organisation but definitely not a fully licensed and registered real estate agent,” he said.
Agent and auctioneer Mr Andrews said it may be tempting for someone driving past that doesn’t have a deposit but he suggests speaking to a lawyer before making any verbal, written or financial commitment on the property.
“If I’m selling your home first I need a commitment that, yes, somebody wants to buy it and, secondly, that they sign a contract and, normally speaking, a 10 per cent deposit is required and balance on the settlement date of 30, 60 or 90 days,” he said.
The Dandenong Journal is currently awaiting a response from the advertised phone number.
