You’ve made the decision to sell your property and have put in the hard work to ensure it’s looking its very best. Now comes the time to decide which sale method to choose – auction or private sale?
Whether to take your property to auction or opt for private sale can be a difficult decision. Both methods have their advantages and it’s important to consider your property’s own unique characteristics before deciding which route to pursue.
Why choose an auction?
Auctions can be very successful for the following reasons:
- Auctions work well when competition is high, creating a sense of urgency amongst the buyers. First home buyer grants help create demand.
- Competition between bidders can drive the price higher than anticipated.
- A set reserve price ensures your property doesn’t sell below a pre-agreed level, and terms are set, simplifying the selling process.
Reasons not to auction
There are some limitations to selling by auction:
- Sales costs are likely to be higher as you will have to hire an auctioneer.
- Some buyers may find the environment of an auction intimidating.
- If your property is one of a set of units or townhouses, recent sales data may work against you.
- Buyers who wish to purchase subject to finance may be excluded as bids are usually unconditional.
Why choose a private sale?
Selling by private sale, or private treaty, has the following advantages:
- Reduced stress for both buyer and seller.
- Lower costs as an auctioneer will not need to be hired.
- A bigger pool of buyers may be available as the sales process is more flexible.
- You will be afforded a greater level of privacy and be able to keep the details of the sale out of the public eye.
Reasons not to go private
Private sales have the following limitations:
- The mandatory cooling off period could result in the buyer changing their mind after contracts have been signed.
- The sales price may not be as high as it will be agreed through negotiation rather than being driven up by competition.
- The process is likely to be slower as conditions may need to be met.
Auctions and private sales are both very successful sales methods but one is likely to be more suited to your particular property than the other.
Contact your nearest Noel Jones office for expert advice on which method will work best for you and your property.