Auction or private sale? What’s the best way to sell your home…

There’s more than one way to successfully sell your property. Here’s our insider intel and expertise to help you make the right choice when selling your home..  


SELLING BY AUCTION

This is a popular way to buy and sell property. You set a reserve price with your agent (the minimum price you will sell your property for) and the agent conducts the auction on the specified date. There are laws for conducting an auction, so it is better left to a professional! If bids don’t reach your reserve price, your agent may negotiate with the highest bidder on your behalf. Auctions can also result in a higher price for your property as there can be a sense of urgency and competition amongst buyers.

Auction pros

  • While it’s difficult to say whether an auction or private sale will fetch a higher price, the amount an auction will fetch is more open-ended, due to the fact that you don’t communicate a specific price prior to the auction. Contrast this to a private sale, in which you set a price and wait for someone to meet it (or for an offer you find acceptable).
  • Auctions provide three opportunities to actually sell your property – prior to auction, auction day or, if the property is passed in, through negotiation.
  • You choose the reserve price, so the property cannot be sold unless bidding reaches that magic number.
  • You choose a settlement date that suits you.
  • Having a fixed sale date can help with your planning. This can be useful if you’re selling one property while buying another and you’re juggling bridging finance.
  • A deadline can focus the minds of buyers. Rather than procrastinate, they’ll be put on the spot.
  • No cooling-off period means that after the contract’s been signed, it’s a done deal.

SELLING BY PRIVATE SALE

We will work out a price range for your property, prior to it being advertised and shown. We then invite prospective buyers to formally submit their best offer, which must be received by a specific date and time. After the set date, we will collect and present the offers to you. You can choose to accept the highest offer, enter negotiations or re-list the property if your desired price is not reached. 

 Buyers will usually try to negotiate below the asking price, so it is important to discuss your expectations with your agent. 

Private Sale Pros

  • With no auction deadline, you can take your time to think about offers that come in. This means less pressure to accept low offers.
  • A private sale might attract buyers who are uncomfortable with auctions.
  • People who express interest are typically genuine buyers. They know their financial limit and can commit to the offer they put forward. 
  • Private sales can give you greater flexibility with contract clauses during a negotiation. 
  • You won’t have to pay an auctioneer fee.

We’re here to help…


Click above to contact us to have your home appraised or to chat to our team about selling your home.