There is more than one way to sell a property, and it all comes down to your specific circumstances and priorities. In the end, the best way to sell your house is the method that suits you and your local market.
The most common methods of sale are auction or private sale. Each approach has its own rules, protocols, benefits and challenges, so make sure you understand the options and can make an informed decision about what’s best for you.
A real estate auction takes place on a single date, when prospective buyers can publicly bid on the property. The seller can set a reserve price at the lower limit of what they are prepared to accept. Assuming bidding reaches or exceeds the reserve price, the property will go to the highest bidder.
Selling property at auction can be a fast and efficient way of getting a good price as it creates an environment of competition. This also makes it very intense, with a focused marketing campaign in the lead up to the day itself.
If you decide to auction your house, you can still accept an offer before the day of the auction, or decide not to sell on the day but continue negotiations with the interested buyers. So, either way, it can pay off.
Once a bidder has “won” the auction, contracts will be signed on the day, the deposit will be paid, and the buyer can’t unexpectedly pull out.
A private treaty / private sale involves a property listing and an asking price. Prospective buyers generally get in touch with the agent to arrange viewings and make their offers, and the agent presents these to the seller for consideration.
In a real estate private sale, an offer doesn’t constitute a binding contract – there is still room for negotiation and the option for either party to pull out. An experienced agent will be able to negotiate with potential buyers on the seller’s behalf, to try and secure the best price.
You might choose to put your house up for sale by private treaty if you’re not in a rush to get moving and are happy to wait for the right offer.
Private house sales tend to give the seller more control, and the opportunity to compare and negotiate on different offers before making a decision.
An auction creates a sense of urgency and competition so will often achieve a better price.
Selling a house at auction comes with the protection of a set reserve price, and terms of sale, so you don’t risk selling at a lower price than this pre-agreed level.
A private auction secures an unconditional contract and a set settlement date, there and then.
Auctions can attract more prospective buyers because there isn’t a set asking price.
If you auction your house, there is no upper limit on the sale price, so you may get much more than you expected.
High stress day so it's important to have a good advisor on hand.
Private house sales give the seller more control over the process.
A private treaty is generally less intense than an auction, and can therefore feel less stressful.
Private house sales give you more time to compare offers.
Private houses sales allow for the asking price to be adjusted over time, to reflect the interest from prospective buyers and fluctuations in the market.
Houses sold by private treaty give both parties the flexibility of a longer settlement period.
A fixed asking price is simpler for buyers.
Less urgency and competition means the whole process can take longer.
Buyers could change their mind during the cooling-off period.
Buyers could pull out of the contract during their finance, building and pest, or other special conditions.
This is where an experienced and knowledgeable real estate agent is invaluable. They can give you personalized home selling advice, based on your own specific circumstances, and guide you towards the best way to sell your type of property in your area.
This specialist real estate sales advice will take into account the following factors:
• Type and location of your property
• Local market conditions and trends
• Your priorities and preferences – sell quickly, save on costs, minimize risk, stay in control, get the best price…
The more that your agent understands about your motivations and priorities for selling your property, the more they will be able to help you to secure the best outcome.
For over 13 years, Calibre Real Estate has led the way in putting our customers first, understanding their needs and preferences, and delivering outstanding results with every sale. We’re working on your behalf to get you the best out of your property sale experience, and our track record speaks for itself.
Your Calibre Real Estate agent will be able to give you a run-down of the pros and cons of the different ways to sell property, as well as advice on selling a house like yours in your particular area. We know the local market, and the approaches that have worked well for recent property sales, and can support you to get a fast sale at the highest price.
Find out more about the importance of setting the right asking pricing so that you attract the right buyers and secure the highest offer.
Learn more about the most effective channels for marketing your property, from printed media to online marketing, paid campaigns and in-person visits, and make sure you’re ready to capitalize.
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