What is the best method to sell your property?

When it comes to selling your property, the two most popular and successful methods of sale are private treaty and auction.  While both methods can produce excellent results, each method has advantages and disadvantages based on your specific needs (eg. price, privacy or urgency), the type and location of the property and position of the local market.  

Private Treaty

This method of sale involves your property being listed for sale with a predetermined asking price set by you, the seller.  The asking price needs to be competitive within the existing market and with other properties that are already for sale. 

In order to enable you to make an informed decision when setting a price, we will obtain detailed information about your property and provide you with a market analysis containing comparable properties for your consideration. 

Once a price as been agreed upon, we immediately being working to sell your property. 

When a Buyer expresses interest in the property, we negotiate on your behalf with the buyer in order to maximize the price. 

 Advantages for the seller:

• The seller can dictate the pace of the sale;
• Offers can be considered at your leisure;
• Some vendors consider private treaty less stressful than auction;
• Marketing costs can be lower; and
• Prospective buyers not prepared to bid at auction might show more interest .

 Advantages for the buyer:

• Private treaty sales can feel less emotional than auctions and don’t require snap decisions;
• There is less uncertainty around price. You can buy the property for the asking price, maybe even less; and
• There is more room to negotiate favourable terms and conditions. For example, a cooling-off period is allowed for private treaty sales. However, there is no cooling-off period with auctions. 

Auction

This method of sale involves a public sale where your property is sold to the highest bidder after the reserve price has been met or exceeded.  The buyer pays a 10% deposit and enters into an unconditional Contract immediately after successfully bidding for the property.  There is no cooling-off period applicable to a property sold at auction.  If the property does not meet the reserve it is passed in. 

 Advantages for the seller:

• Auction is a a multi-phased marketing plan. You are able to sell your property before auction, on the day of auction, or in the event the property is passed in, directly after auction;
• You are able to set the reserve price and a settlement date to suit you
• Because you have not declared your reserve price it gives you a chance to test the market;
• A sense of urgency is created, buyers have a definite time-frame in which they must act. Buyers see other purchasers rather than you, as competition. Auction creates a competitive environment; and
• All contracts are unconditional and no cooling-off period applies. 

 Advantages for the buyer:

• The sale is legally binding and the vendor cannot accept a better offer made by another purchaser afterwards;
• Eliminates lengthy negotiations;
• You set your own price – you pay only as much as you want;
• It's incredibly fast – settlement can occur within a month; and
• If it is passed in, you are in a stronger negotiating position.