Both approaches to selling your property have plenty of merits. Private treaty is the traditional method of sale where buyers negotiate on an advertised price. An auction, on the other hand, allows interested buyers to offer competing bids for your home openly. Moreover, if there’s plenty of interest, a sale under the hammer can often mean selling the property for a higher price.
If you are committed to trying to sell your property at auction, it’s critical to establish a realistic reserve with the assistance of your Raine & Horne agent. If a property doesn’t meet its reserve at auction, you can negotiate with the highest bidders or pass the property in altogether and take your chances with a private treaty sale.
An auction is always a smart choice for properties with an ‘X’ factor. Typically, properties falling into this category will be hard to value, as they have a fantastic view, or it’s a style of home that rarely hits the market for sale.
Other factors work in favour of a vendor who chooses to take a property to auction. For example, homes sold by auction are typically only on the market for a 42-day marketing campaign, whereas there are no deadlines attached to a private treaty sale. This auction day deadline creates a sense of urgency for buyers that can even help accelerate the sales process as buyers may even bowl up some preauction offers. Also, prospective purchasers must complete all their enquiries within a limited time frame determined by the auction date.
Indeed, your agent will be especially valuable when it comes to assessing pre-auction offers. In the lead, up to auction date, the agent will be able to gauge the level of interest in the property based on the number of contracts issued and the numbers of building and pest inspections undertaken.
To discuss the best method of sale for your property this spring, talk with your local Raine & Horne agent today.