Auction versus private sale
Deciding on the best method of sale for your property.
There are many ways to sell your home, including sale by tender, expressions of interest and sale by set date. However in Victorian residential Real Estate, sale by auction and sale by private treaty (private sale) have proved to be the most successful.
An auction is when prospective buyers come together to bid for your property on a specified, pre-agreed date and time, with the highest bidder buying the property (subject to the reserve price being met). A private sale on the other hand, has no fixed time frame – the property is on the market until it sells.
The benefits of an auction
The real benefit of an auction is its capacity to focus buyers’ energy on a single point in time, when they are single-minded in their ambition to buy. The public forum of an auction also tends to pit bid against bid. Encouraged by emotion and competitive spirit, this can lead to a higher price.
The benefits of a private sale
A private sale gives you greater control over the sale price: you decide (with your agent’s expertise and guidance) the price at which you will be happy to sell your property. Your agent will then negotiate the price with prospective buyers privately. With marketing support, the timeframe of a private sale can be successfully managed to suit you.
Making a decision
The method of sale for your property is ultimately your choice. When weighing-up the pros and cons ask your agent:
- What is the most common or popular method of sale in your area?
- Which method is likely to achieve the highest price?
- Which method is your agent recommending and why?
Your hockingstuart agent is a valuable resource. Call on your agent’s experience and expertise to explain the processes clearly so you will be comfortable with whatever method of sale you choose.