The best-selling methods depends on your needs as a vendor and your preferences on how you would like the sale to run. You will need to take into consideration the location of the property, the timeframe you have to sell your property, and the state of the current market. Read more to understand the three main ways to sell property in Australia.
Private treaty
Private treaty is the most common approach to selling property. When selling your property via private treaty, you will set an asking price for your property to be listed at. The asking price can even bit within a range or call for offers over a certain price.
With a private treaty, you are able to enjoy greater control over the sales process and have time to thoroughly consider all offers of potential purchasers. Private treaty allows for potential buyers to make private offers without knowing what other buyers think it is valued at and without the pressure that auctions often bring. It also allows you to negotiate price and settlement conditions
Some of the main cons of selling by private treaty is that unlike auctions, there is no great urgency to act or a definitive campaign end date which can sometimes means the property can be on the market for a longer period of time. With a longer sales campaign, there will also be more open homes which means you will have to also be opening your home more regularly for inspection
Auction
The auction process usually involves a 4-week campaign where a reserve price is set and potential buyers publicly bid for the property. Auctions create a sense of urgency and is best for selling when you have a deadline. It is often a good option if your property is unique or not easily valued, or if you are in a sought-after location.
As a seller during the auction process, there are quite a few benefits that make auction a popular selling method. You are able to set the reserve price which will be the lowest you are able to sell the property for. There is opportunity to receive pre-auction offers, there is no cooling-off period and you have increased control over contract terms.
Auction campaigns are generally more expensive than a private treaty as there are more costs involved with running the auction. Advertising campaigns need to be extensive to deliver potential buyers on the day. In the case that your property doesn’t reach its reserve price, it will be ‘passed in’. From here, the agent will often negotiate with the highest bidder or the property will be put back on the market. If the bids are above the reserve price, the property will be sold at the fall of the auctioneer’s hammer. The successful bidder must sign the contract of sale and pay you a deposit on the spot.
Expression of Interest
Selling your property by Expression of Interest is the process where buyers are invited to submit an offer to purchase a property, by a specified time and date. In most cases, the property will be on the market for four to six weeks which gives the buyers enough time to attend inspections, finalise their finance and decide on a price. Each potential purchaser then puts forward their best and final offer in writing.
Do you want to learn more about which selling method will suit you best? Contact us today to speak with one of our experienced local agents who can advise you based on your situation.