UNDERSTANDING THE DIFFERENT WAYS TO SELL A PROPERTY
Historically, Property Plus have favoured private sale over other methods of sale and we’ve achieved outstanding results this way, however understanding the different options available is a good idea as the Central Victorian market is changing.
Selling a property by Private Treaty
A private treaty / private sale occurs when a property is listed for sale with an asking price which can be a single figure or a price range, in Victoria by law if you are using a price range there can only be up to 10% variance between the bottom and top figure in the range. Interested buyers make an offer to the agent, who in-turn present the offer to the seller. The agent will negotiate individually with prospective buyers to achieve the best outcome possible. Traditionally this method of sale gives more control to the seller, they can take time to consider offers and negotiate until they are happy to make the sale. Many markets across Australia achieve the best results using this method of sale.
Selling a property by auction
A real estate auction is a public sale of a property where prospective buyers gather to publicly bid on a property. If the property reaches the reserve price set by the seller when the hammer falls the property will be sold to the highest bidder. Contracts will be signed, deposit will be paid, and as there is no cooling off period the buyer is legally obliged to buy the property. An auction by the fact it is held on a particular date and at a specific time, creates a level of urgency. By grouping all interested buyers together at one time it can also have the effect of creating a competitive environment. In Victoria by law a "Statement Of Information" must be provided during the advertising campaign and this provides a potential price guide the property may sell for however the competitive spirit of an auction means there are no restrictions placed on what the final sale price may be. Selling a property by expression of interest / tender
Similar to an auction there is a timeframe and property is marketed with buyers invited to submit their confidential best offers by a particular date and time. After the closing date, the seller and their real estate agent will review the submitted tenders and accept, reject or negotiate with buyers to achieve an outcome both the buyer and seller is happy with. This method of sale has traditionally been more suited to high end or exclusive properties. Choosing the best method of sale when selling your property
Your real estate agent is the best person to help guide you here. They will discuss the following elements before recommending the best method of sale for your property:
The kind of property that you are selling
The location of your property
The condition of the local real estate market, is there demand, is there a lot of competition?
How quickly you want to sell
Your personal preferences
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