There are three different sales methods used when it comes to selling property. If you choose a knowledgeable and experienced Real Estate Agent, they’ll know which technique will achieve the best result in the sale of your property. Hence why it’s so important to do your research on an Agent’s success rates, as well as gaining an understanding of how comparable properties have successfully sold within your area.
In this blog, we will look at and discuss the different ways you can sell property, as well as understanding the relevant rules and regulations within your state/territory governing these methods.
Private Treaty:
Private Treaty is arguably the most balanced and popular approach to selling property within Australia. With this method, you and your Agent will decide the appropriate listing price for your home. The Agent will then individually negotiate with every potential buyer who has shown interest in your property.
Private Treaty generally gives you better control over the sale process, allowing all parties to make considered decisions. It also avoids the public display and uncertainty that an Auction can sometimes possess.
Auction:
Thriving on the element of face-to-face competition, an Auction is a publicly or privately held event, where potential buyers will gather to bid on your property until the highest offer is made.
Before the event, your Agent will set a reserve price so you are guaranteed a selling price that is equal to or greater than the amount you would like. Due to the fact that there are other bidders and because of the fixed date deadline, auctions also have the benefit of creating a sense of urgency.
However, some buyers can be put off by the competitive nature of auctions, which can result in your property being passed in. This can lead to a drop in the perceived value of your property too. Auctions are also an added expense due to the additional cost of hiring an Auctioneer, as well as sometimes a more expensive campaign to drum up attention and competition.
Auctions are conducted by Licensed Real Estate Agents, and are governed by strict rules and regulations. These differ in each state and territory, so you should always check what they are for your area.
Expressions of Interest:
This sales method involves gathering buyers’ best offers by a specific date without disclosing the final price that the seller is willing to sell for. In essence, once you’re ready to sell, the property will go on the market for a few weeks, in which time, potential buyers will have the opportunity to look at your house, organise their finance, and anything else required before making an offer.
Similarly to Auctions, this method can create a sense of urgency, but without the stress of public bidding. Due to the blind nature of expressions of interest, this can result in prospective buyers putting in lower offers than what you’d accept.
If you are eager to sell quickly, an auction may be your go-to method; if you want a stress-free approach, private treaty is probably the best option. Your chosen Real Estate Agent will assist you in determining what is the best method for your property though and lead you in every step of the way to achieve the best outcome in the sale of your property.
Looking for more information? Contact our Negotiators today for any assistance.