Selling Methods

You want to sell your home, but you don't know which selling method will suit you best? Should you auction your property? Maybe a private sale would be better? Maybe something in between?

Each method has its pros and cons, so it's just a matter of weighing these up to decide which suits you best. So have a read below, and it might make the decision a little easier.

 

Public Auction

Public Auction is a very popular method with sellers in Sydney as it creates a situation where buyers have to compete with other buyers, rather than competing with you, the seller.

With an auction, your property cannot be sold unless it reaches your 'reserve price' - however it can be sold for well above the reserve price. This is because there is no firm asking price; hence, no "ceiling" is created in the buyers' minds.

You benefit as the seller because a Public Auction:

 

Ø  Significantly raises the profile of your home through a carefully targeted, intensive advertising campaign.

Ø  Places a time limit on buyers, encouraging them to make a high offer before the auction rather than wait to see what auction day may bring, allowing you the option of selling before auction if you choose.

Ø  Allow you - the seller - to set the terms of the sale.

Ø  Has no "cooling-off" period (when buyers change their mind).

Ø  Is not conditional on buyers' finance approvals.

Ø  Creates competition between buyers, pushing the price up rather than negotiating it down.

 

Submitting your property for auction means that prospective buyers will bid against one another at a date and time set by you. Both the seller and buyers can see how much interest there is in the particular property and, importantly, each buyer can see whom they are bidding against.

Each bidder is competing for the same property under the same terms and conditions, with the property being sold to the person who is prepared to bid the highest amount.

 

Private Sale (Private Treaty)

While many sellers prefer the Public Auction method, some view Private Sale as being less stressful. Private Sale, or Private Treaty, is where the property is offered at a price determined by you, the seller. When a buyer expresses interest in the property, an First National Real Estate Parramatta consultant negotiates on your behalf with the buyer in order to maximize the price.

You benefit as the seller because a Private Sale:

Ø  Can have less marketing costs associated with it - this of course depends on how long it takes to achieve a satisfactory sale.

Ø  Removes the open competition that comes with bidding - which may suit you if you find auctions daunting.

Ø  Can be slightly less stressful because it does not build up to a deadline like auction day.

Ø  Enables you to negotiate on terms and conditions (such as long settlement), as well as the price.

Ø  May have a lower profile campaign if so desired.

Many purchasers like the fact that a price is defined, and would therefore prefer to buy through private sale. However, the seller of the property must commit to a price when the property goes onto the market, therefore it is critical that you set the price correctly.

 

'For Sale by Negotiation/Expressions of Interest'

This method of sale is similar to selling by the Private Sale method in that the property is offered to the market and buyers with an interest in your property are encouraged to make an offer and negotiate. When a buyer expresses interest in the property, an First National Real Estate Parramatta consultant negotiates with the buyer to maximize the price. Rather than offering your property at a 'set price' as in the traditional Private Sale method, this method uses a 'price range' or price guide. Thus, in the buyers' minds there appears to be room for negotiation.

You can benefit by using the 'For Sale by Negotiation/Expressions of Interest' method because it:

Ø  Can have less marketing costs associated with it - this of course depends on how long it takes to achieve a satisfactory sale.

Ø  Removes the open competition that comes with bidding - which may suit you if you find auctions daunting.

Ø  Can be slightly less stressful because it does not build up to a deadline like auction day.

Ø  Enables you to negotiate on terms and conditions, as well as the price.

Ø  May have a lower profile campaign if so desired.

Should you have any further questions about any of these selling methods, an First National Real Estate Parramatta consultant would be only too happy to answer any queries.