Auction or Private Treaty?
There are several ways to sell your property. The most common are auction or private treaty. Both have advantages and disadvantages. Your agent will advise on the best method based on the type and location of your property, the nature of the market and your preferred time frame. Below is a summary of both methods.
Advantages of auction
Auction is recognised as an effective way of creating broad public interest, achieving maximum publicity and reaching a large number of prospective purchasers.
· Best price
Properties marketed through the auction process often achieve prices much higher than the seller’s expectations. There is no upper limit for bids.
· You control the process
Vendors choose where and when they want to sell the property, the terms and conditions of sale and the price they are willing to accept.
A short but comprehensive marketing campaign means less disruption to family life. Set inspection times for potential buyers are arranged at the outset, with ‘open for inspections’ limited due to the short nature of the campaign.
· Maximum exposure
Auction campaigns are tailored to enable maximum marketplace exposure. Concentrated marketing over a short period attracts a higher level of interest and genuine buyers.
· The market determines the price
Auction is a great way to determine the real value of a property. Eliminating price lets the market determine what it is really worth.
· Auction works to a plan
The marketing strategy is carefully planned, documented and specially tailored. A firm date is set for the potential sale.
· Reserve price
A reserve price is set and the property cannot be sold below this price without owner approval. The reserve need not be set until just prior to auction. The owner’s reserve is not disclosed during the auction.
· Auction is conclusive and contracts are signed immediately
When a buyer purchases a property at an auction, the contract is signed immediately and the buyer must pay a deposit. The contract cannot be rescinded by the purchaser, which safeguards against loss of contract and sale.
Selling by private treaty also offers several benefits.
· You set the price.
· Offers can be considered at leisure.
· You can determine the pace of the sale process.
· The pace of negotiations can be controlled.
· Buyers might be more comfortable with a cooling-off period.
· Private treaty can sometimes be less stressful.
· Marketing costs might be lower.
· Prospective purchasers not prepared to bid at auction prefer private treaty.