There are two main alternatives when selling residential property. Either Sale by Private Treaty (For Sale) or Public Auction.
When selling by Private Treaty, you discuss a price or a price range with your agent before it is listed for sale. While many people initially feel more comfortable with the idea of setting a price, there are a few things to consider.
Firstly, you need to understand your property’s value in the current market. This, in itself, is a difficult process as the true value of any property is what the market is prepared to offer.
While this method seems more relaxed, there’s also less incentive for buyers to negotiate, complete enquiries and move quickly to complete their purchase. Buyers are sometimes tempted to use the absence of a time limit to their advantage.
All GO2 Agents have an extensive knowledge of recent market activity in your area and will guide you to present your property at the right price and with the most effective marketing strategy for your property, maximising your return.
At an Auction, all interested buyers come together at the auction and compete to purchase your property. An Auction campaign is usually 4 – 6 weeks of marketing and open homes attracting perspective purchasers to the home, ending with the Auction day.
If the highest bid at Auction is accepted, the sale is finalized at the fall of the Auctioneer’s hammer. The property is ‘passed-in’ if the highest bid fails to meet your reserve price.
For the owner, Auctions have several benefits including:
- Competitive bidding – You enjoy a position of strength as buyers compete against each other instead of you.
- No pricing issue – You have the benefit of several weeks of market feedback before setting your reserve. Because there is no advertised price, strong demand can sometimes result in a sale price above expectation.
- Three opportunities to sell – before, at auction or immediately afterwards.
- Tight time frame – Buyers have a set time frame to work towards. This focuses your buyers’ attention and provides the incentive for finances and building inspections to be completed in time for Auction day.
- No cooling off – A sale made under the hammer is definite and there is no cooling off period.There are other systems or means of selling your property and these can be discussed with your GO2 Agent.