“A sale by public auction is arguably one of the most exciting, effective and rewarding methods of buying and selling property, however, all methods have a place in the market.”
Auction
Auctions are popular in the market at the moment and we suggest you familiarise yourself with the auction process.
As a seller you will set a reserve price with your agent, this is the minimum price you will sell your property for. Don’t worry you can amend this at any point during the campaign. a 4-6 week marketing campaign will be undertaken to ensure the whole market is captured. Potential buyers are then invited to the auction, either at the property, or at a function venue where an accredited auctioneer conducts an auction on the specified date.
The highest bidder at the end of the auction becomes the successful buyer, provided the bid matches or exceeds your reserve price.
Auctions can result in a higher price for your property as there can be a sense of urgency and competition from buyers, however the prospect of an auction can also put buyers off.
It’s important to discuss with your agent what the best way to sell your property is for you.
Private Treaty / On Market
A standard residential property transaction is known as a Private Treaty sale. This is when you set the price you’d like your house to sell for, and your real estate agent negotiates individually with prospective buyers to achieve a sale as close to this price as possible.
Setting a sale price offers greater flexibility for negotiation. For instance, a contract can be signed ‘subject to’ certain conditions such as a building inspection or finance approval.
With private treaty the length of time your home is listed for sale is flexible: unlike an auction, you are not working towards one specific date.
You could expect some cost savings on the marketing and promotional expenses of an auction campaign should your property sell quickly.
It may take longer to sell your home compared to an auction campaign. You might need to make your home available to prospective buyers for frequent viewings and inspections.
Off Market
Qualified buyers are invited to inspect properties before they are advertised to the public. Qualified buyers are invited to inspect properties before they are advertised to the public.
This gives the seller an opportunity to test what the market response will be like, gain positive and negative feedback and gauge pricing expectations.
Offers can be submitted, reviewed, negotiated, and accepted without advertising the property to the public.
If there is strong demand for the property, advertising to the public could result in a higher sale price.
