Selling your property involves a host of decisions large and small: which agent, what price, when? And among the list of critical decisions you will need to make is how exactly to make that sale.
Are you willing to wait it out, looking to take it to auction or keen to feel out the market? Here are the three ways properties in Australia are sold, and the pros and cons that each method offers.
For sale/private treaty
Arguably the most common method of selling a property, private treaty involves entering into an agreement with your agent to list a property at a set price, then opening your home for inspections and receiving offers from potential buyers.
This method has a host of benefits which have led to its popularity, not least of which is the control it offers the seller.
Selling via private treaty allows you to set the price of your property, along with the marketing strategy for the campaign and even the terms of inspection, such as by appointment or weekly open houses.
It also allows the seller to choose the length or type of agreement with the agent, and there is no cut-off date for when the property must be sold.
Additional benefits include the ability for buyers and sellers to negotiate terms of sale such as long contracts.
Particularly popular in “booming” market conditions, selling a property at auction typically involves an intense, and shorter, marketing campaign that culminates on auction day when buyers bid for your property.
The seller still retains control by setting a reserve price (the minimum amount for which the property will be sold), but the buyer adrenalin of competitively bidding for a property will ideally drive the price up.
In an auction situation there is no cooling off period, and the sale is not subject to conditions like buyer, meaning at the fall of the hammer, the property is sold. Buyers can also attempt to negotiate a purchase prior to auction.
There is however, the drawback that should your property fail to attract bids or meet reserve, you may then need to look at a further campaign of selling by private treaty.
By expression of interest
Increasingly popular for prestige properties, selling by expression of interest or by tender allows the seller to gauge the market within a set time frame. Like an auction, interested parties put in offers on the property, but do so via a written offer, allowing the seller to see exactly who is interested in their property at what price.
Effectively this allows the buyers to set the market price, but sellers are not compelled to take any offer they receive. They can also choose to sell the property before tenders close, should the price be right.
About United Strata
The most important aspect of selling your property is to choose a sale method that you are comfortable with and an agent who will represent you well.
Specialising in the Macarthur region, United Strata offers professional yet personalised service to guide sellers through the sale process. We provide free market appraisals that include a comprehensive report along with our recommendations on the value of your property.