Negotiable Terms in the Contract of Sale
There are terms that are negotiable on a Contract (Contract of Sale). Most notably, deposit, settlement date, price and sometimes there might be some subject to condition that the purchaser requires to be imported into the contract unless of course, if you’re buying in an auction, you won’t have the opportunity to negotiate such terms.
The deposit is typically 10% and can go down from there. So, some people might go to auction not having all of their money ready cause they’ve just sold their house and haven’t quite got their deposit released already to them. They might negotiate with the agent prior to the auction date whether the vendor will be willing to accept a 5%, 6% or 7% or even a fixed amount of deposit.
A private treaty sale is more negotiable on the terms than auction and these are definitely more favorable to the purchaser because they’ve got a little of a breathing time and that’s always a good thing for the purchaser. So you might sit down and offer your terms to the agent for a private treaty and it might include deposit of less than 10%, purchase price or an offer of $x, settlement date of 30/60/90 day, whatever is suitable to you and also whether you need any subject to terms. Those subject to terms are predominantly finance and building and pest inspection.