DIFFERENT WAYS TO SELL YOUR PROPERTY

When selling your home, there are three main sale methods you can choose from. For you to achieve the highest sale price, it is important to talk to Realty HQ about which method they believe is right for you and your property.

Certain areas and specific properties within an area will achieve better results when sold via private treaty vs auction and vice versa. So make sure you do your research and talk to your agent about the best method of sale for your property.

In this guide, we will outline the different ways you can sell a property.
 

Selling by Auction

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An auction is a private sale held at a specific place, time and date following a marketing campaign over several weeks. A licensed real estate agent will conduct the auction, which is governed by strict rules and regulations. 

By nature, an auction creates urgency. There is a definitive time when the buyer must act, or they risk missing the opportunity to buy the property. Setting an auction date groups all interested buyers together at the one time, creating a competitive environment and the best chance to achieve the highest possible price.

Unless the property is passed in and consequently becomes listed ‘for sale’, the seller knows exactly when settlement will occur. The benefit of this is being able to plan ahead with your next move.
 

The great thing about auctioning your home is that there is no price limit. There is only a minimum amount that you are prepared to sell for, the reserve price, which you decide based upon market feedback from your agent during the campaign. 

The marketing undertaken for an auction property needs to be more focused and can often cost more. A date is set and strong buyer interest needs to be created in a short amount of time. Your Realty HQ agent will recommend using a multi-faceted approach, advertising across several different media each week until auction day.

Once the hammer falls the property is sold. Buyers need to conduct building inspections and ensure their finance is approved before bidding at the auction. If the property fails to sell at auction, you can continue marketing the property with an asking price. It is likely that one of the buyers, often the highest bidder, will come forward and negotiate a sale with the agent on your behalf.

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Some of the benefits of selling your property by auction include:

 

• Auctions attract more buyers to your property because prospective buyers aren’t put off by an asking price.

• The auction date creates a sense of urgency that prevents buyers from delaying their decision and lets them know you are serious about selling.

• You are protected by a reserve price. This means your property won’t sell unless bidding reaches a pre-agreed level.

• There is no ceiling price, so you have the opportunity to achieve a price above your expectations.

• Auctions produce an unconditional contract for sale with a set settlement date.

 

Selling by Private Treaty

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This is when the home owner sets the price tag to put on the property for sale. Your Realty HQ agent will then negotiate with each and every interested party to find a willing buyer who will meet your nominated price or make an offer as close to it as possible. 

It is important to ask your local Realty HQ agent for guidance when establishing your asking price. They are experts in the local area and understand demographics, market trends, and pricing value. They also know about comparable recent sales in your area. Having a clear understanding of your property's value will ensure you set a realistic price.

A sale by private treaty gives the seller greater control, more time to consider offers by prospective purchasers, and the ability to extend the time the property is listed on the market (although this can lead to potential purchasers wondering why the property is not selling). Plus purchasers must make offers on your property 'blind', without knowing what other buyers are willing to pay.

Some of the benefits of selling your property by private treaty include: 

• A fixed price makes it easy for buyers - they don't need to ‘guess’ your desired sale price.

• The price can be adjusted throughout the marketing stage, based on qualified buyer feedback and local market conditions.

• This method of sale is a tried and tested style of marketing.

 

Deadline Sale

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A Deadline Sale is when you invite buyers to submit an offer to purchase your property by a specified time and date. Each potential purchaser puts forward their best and final offer (in writing). 

Generally the campaign will be set for 3-4 weeks. This will allow you to promote your property effectively while ensuring that buyers get ample time to look through the home, finalise their finance and determine the price they are willing to pay.

When submitting an offer, the buyers need to include the price they are willing to pay, the conditions of sale, such as settlement date and finance conditions. 

At the end of the sale period, the vendor will review submissions and choose the offer that suits them the most. If the vendor doesn't find an acceptable offer, they are free to market the property as they see fit.

If you are a buyer putting in an offer, remember that you may only have one chance to secure the property. Therefore, always try to put your best offer forward to ensure you’re not disappointed.

A Deadline Sale provides you with the benefits of a private treaty sale, but with the urgency of an auction - without the potential stress.

Some of the benefits of selling your property by Deadline Sale include:

• This method of sale shows you are confident about your property and a successful sale.

• Offers the intensity of an auction but without the potential stress of an auction day.

• Enables you to keep the price you may accept for your property discreet and lets the market dictate the price buyers are prepared to pay.

• The closing date  creates a sense of urgency in the buying process.

• This method of sale generates competition for your property.
   

Ready to sell your home? Request a free appraisal from Realty HQ today to get a better understanding of where your house stands in the current market. It will also give you the opportunity to discuss what the best sale method is for your property.