The different ways to sell a property
Auction, private treaty or expression of interest – there’s more than one way to sell a property and some methods suit some properties better than others.
So, when it comes to selling how does each strategy work, and which one is right for you? Here’s an insight into the different ways to sell a property.
Private treaty
Perhaps the most common way to sell a property is private treaty, which sees the vendor set a fixed price for the property, based on market interest.
In other words, the seller sets a price which is advertised as part of the property’s marketing materials. Buyers then either meet that priced or submit an offer based on it.
The key to attaining a sale through private treaty is ensuring the price that is set and advertised for the property meets the market conditions. And this is where the advice of an experienced agent is invaluable.
The right agent will help you set a price based on recent sales in the region, the condition of the property, the type of buyer the property is likely to appeal to, the volume of potential buyers at that time and a whole host of other factors.
They will tread a fine line between value for the buyer and financial reward for the seller, in the knowledge a price that is too high will put people off, and a price which is too low is not in the interest of the vendor.
Private treaty advantages
Private treaty offers clarity for potential buyers. They know exactly the price the property is expected to achieve and can negotiate finance accordingly.
Private treaty can also potentially offer flexibility. The buyer can make an offer based on that sale price, they can also ask for conditions on the sale contract, such as pending finance, pending pest and building, longer or shorter contracts, or pending the sale of their current property.
Auction
Auctions can help generate interest in a property while offering true transparency in the sale process. Auction campaigns are also generally shorter than private treaty sales, allowing the vendor a clear end-point when it‘s likely their property will be sold.
One major benefit of auctions is the transparency involved. This comes down to the fact buyers are acutely aware how many other people are interested in buying the property and what they are willing to pay.
A major element of taking a property to auction is setting the reserve. This will be done with the assistance of an agent who has had the opportunity to gauge market interest during the sales campaign leading up to auction day.
Auction advantages
Auction advantages include their competitive nature. Often auctions gain a lot of interest because there is no list price – it depends who is there on the day making a bid for the property. On the flipside the vendor is protected by the reserve which allows them surety their property won’t be sold for less than they desire.
Meanwhile, there is no ceiling price. The sky is the limit for what a vendor could receive under the right conditions.
Finally, auctions often allow for a swift sale. Auctions produce an unconditional contract for sale with a set settlement date.
Expressions of interest
Not as common as private treaty sales or auctions, expressions of interest see the vendor set a date for when potential buyers put forward their best offer in writing.
Often these campaigns run four to six weeks, with a set submission date. In the interim buyers look through the property, conduct the relevant inspections and investigate their finance options before submitting an offer that outlines the price they’re willing to pay, their conditions and settlement date.
At the end of the sale period, the seller reviews the submissions and selects the option that suits them best. If a suitable offer isn’t put forward the vendor may opt to then have a private treaty sale or ask for further expressions of interest.
Advantages of EOI
Like an auction, this strategy creates a sense of urgency and competition for a property, but without the stress of a formal auction event.
It also indicates you are confident in achieving a sale for the property, while enabling the market to set the price. EOI also allows for a discreet sale price.
About Eview
Regardless of which option appeals most to you, our experienced Eview agents here to assist with local knowledge, market insight and professional advice to help guide you through the decision making process, and assist with any sale.
