The property is listed with a price or price range. As market forces dictate sale prices, the asking price must be competitive, so we’ll compare your house with similar properties sold recently. This will help you make an informed decision about your asking price.
The property may be sold at any time.
By placing a price on the property, the seller is never sure whether they have gained the current maximum market price.
Potential buyers will look for reasons to discount the property’s price.
The sale of the property is subject to finance, building and pest inspection clauses, plus a five-day cooling-off period.
Private treaty allows you to dictate the pace and consider options at your leisure. Also, some people consider this method less stressful than auctions. However, there is less sense of urgency than with an auction and a short cooling-off period applies.
An auction is an exclusive agency agreement and therefore is subject to a 90-day agreement.
The property is NOT listed with a price.
The property can be sold before auction, on the day (under the hammer) or by private treaty after the auction.
The property is offered without a price (other than the seller’s reserve price at auction), so any offer may be negotiated positively.
If the property is not sold before or on the day of the auction, the marketing process will have indicated where the property sits in terms of price. If the property is not sold within 30 days, it is priced and sold under exclusive agency conditions.
If the property is sold under auction conditions, the contract is unconditional, ie. there are no finance, building or pest clauses and no cooling-off period. There is a 5% or 10% deposit payable on the fall of the hammer.
The advantage of an auction is that you have three sales avenues – selling before auction, on the day of auction or directly after the auction is your property is passed in. Other advantages are that you’re able to set the reserve price and a suitable settlement, and auctions put pressure on the purchasers by creating a competitive environment.