2024
Auction, Price guide, Off market
Auction, Price Guide or Off-Market
Which method of sale is right for you & your property?
Although auctions can sometimes be an effective and rewarding method of sale, all methods of sale have a place in the market. It’s important to discuss with your agent what the best way to sell your property is for you.
Auction
Price Guide
Auctions are a popular, highly effective method of selling your property. We suggest you familiarise yourself with the auction process.
A standard residential property transaction is known as a private treaty sale. This is when you set an advertised price in the form of a ‘Price guide’ and your real estate agent negotiates individually with prospective buyers to achieve a sale as close to this price as possible.
As a seller you will set a reserve price with your agent. This is the minimum price for which you will sell your property. Don’t worry, you can amend this at any point during the campaign. A marketing campaign of 4–6 weeks will be undertaken to ensure the whole market is captured. Potential buyers are then invited to the auction, either at the property or an offsite venue, where an accredited auctioneer conducts an auction on the specified date. The highest bidder at the end of the auction becomes the successful buyer, provided the bid matches or exceeds your reserve price.
Setting a sale price offers greater flexibility for negotiation. For instance, a contract can be signed ‘subject to’ certain conditions such as a building inspection or finance approval. With private treaty, the length of time your home is listed for sale is flexible. Unlike an auction, you are not working towards one specific date. It may take longer to sell your home this way compared with an auction campaign. You might need to make your home available to prospective buyers for frequent viewings and inspections.
Auctions can result in a higher price for your property as there can be a sense of urgency and competition amongst buyers, however the prospect of an auction can also put buyers off.
Off Market Qualified buyers are invited to inspect properties before they are advertised to the public. This gives the seller an opportunity to test what the market response will be like, gain positive and negative feedback, and gauge pricing expectations. Offers can be submitted, reviewed, negotiated and accepted without advertising the property to the public. If there is strong demand for the property, advertising to the public could result in a higher sale price.
Click here for a free market appraisal
Tyler Moon 0413 649 589 tyler.moon@mmj.com.au