There’s more than one way to sell your property – and you may have a preference of how you’d like to go about it. Here are the most common methods of selling a home.
This is a popular way to buy and sell property. You set a reserve price with your agent (the minimum price you will sell your property for) and the agent conducts the auction on the specified date. There are laws for conducting an auction, so it is better left to a professional! If bids don’t reach your reserve price, your agent may negotiate with the highest bidder on your behalf.
Auctions can result in a higher price for your property as there can be a sense of urgency and competition amongst buyers, however the prospect of an auction can also put buyers off. It’s important to discuss with your agent what the best way to sell your property is for you.
A sale by private treaty means you offer the property to the market at a listed price and invite offers from interested purchasers. When offering a property for sale by private treaty you have the ability to vary the price whilst it is on the market and you will also have the opportunity to consider each individual offer from potential purchasers. Your real estate agent will be able to offer advice on realistic selling prices and you can amend the details in your signed Agency Agreement form if required, by variations which must be in writing and signed and dated by both you and the sales representative.
Although the exact time frame will depend on market conditions, a sale by private treaty could take longer than a sale by auction, and it could involve more negotiation. Yet the number of offers you receive gives you and your agent important feedback on the accuracy of your sale price. Rather than waiting for the results of an auction to make adjustments, you can afford to be more flexible with your pricing plan.
A tender is a very formal sale process, which requires potential buyers to submit a proposal in response to the request to the owner’s advertised tender.
Expressions of interest
An expression of interest is similar to a private sale/treaty however a formal written offer must be submitted for the property by a specific date.