Private Sale or Auction?
Selling your home via auction or private treaty is never an easy decision to make.
Your real estate agent may have a strong opinion about which is the better option so be sure to quiz them about the reasons for their preference. It might also help to look at auction clearance rates in your area as market conditions can influence the success of either sales method.
The style of property, its location and the time-frame in which you wish to sell are other factors that should influence your choice. Here are some of the common reasons why sellers choose one method over the other.
Reasons to choose auctions:
- Quick sale. The fixed date of an auction and fast turnaround of the marketing campaign gives buyers a definite time limit in which a decision must be made.
- Market price. The market decides what the property is worth rather than the seller.
- Competition. An auction is an emotionally charged event and if you have two buyers battling it out, they may end up pushing up the sales price well in excess of the seller's expectations!
- Convenience. A short campaign means fewer times you have to open your house for inspection.
- No cooling off. Unlike a private treaty sale there is no 'cooling off' period, so a buyer can't change their mind after they have signed the contract under auction conditions.
Reasons to choose private treaty:
- Less pressure. There is no official sale date until an offer is accepted, which reduces the sense of urgency.
- Predetermined asking price. The owner nominates the asking price based on market research and in consultation with the agent.
- More time. There's the luxury of time both to attract more interest and to consider offers.
- Test the water. You can dip your toe in the water and see if someone will make you an offer you can't refuse.
- Negotiation. More opportunity to work with interested buyers to come to an agreed sales price.