Want to sell your property? You can do it in two ways: either go for a public action or a private sale. Both of these approaches have their own set of pros and cons. So, let’s run a comparison.
Public Auction
Generally believed to be the most effective way of selling your house, public auction is popular in many suburbs across the country. If, for some reason, you cannot clearly determine your property’s value, then a range maybe a better choice in the sense that you may be able to get a greater offer.
Auction is also recommended if your property can attract a number of buyers, which increases competition, raising the final sale price. Generally, marketing efforts are spread out over 4 weeks. Just ensure that the organisation you choose has skilled auctioneers, so that the outcome is more favourable. Laing and Simmons Real Estate in Sydney has a competent team of professionals who can help you out, and ensure that you get the best deal.
The Pros
- You set the settlement dates and contract terms as per your own wishes.
- Auctions are associated with an end date, which creates a sense of urgency among buyers, and forces them into taking an immediate action. Plus, this also means that you can get bigger bids, and eventually, a higher sale price.
The Cons
- The marketing efforts involved with auctions can cost you significant money.
- Some buyers may prefer private sales because auctions can be intimidating. Plus, some of them might not get pre-approved finance, which can ward them off.
Private Treaty
A private treaty also results in a sale, but this time, you set the price. Your chosen real estate agent then negotiates with buyers, and tries to close a deal closet to the set asking price. You would have to wait until you find an interested buyer who is willing to pay that amount.
The Pros
- You get more flexibility in terms of negotiation. The contract can often include specific conditions and terms such as approval of finances.
- You get sufficient time to carefully consider and evaluate various offers from interested buyers.
- You don’t have to invest in any marketing campaigns, unlike a public auction. So, you get to save a lot of time, efforts, and of course, the money.
- A private treaty involves negotiation, so you do get some privacy and can withhold sensitive information.
The Cons
- Generally, if you choose to sell your property through a private treaty, you would have to spend more time than in an action. Since there are no concrete deadlines to take care of, sale progresses at a slower pace, unlike an auction, where the buyers act quickly so as not to miss the due dates.
- Interested buyers may want your property to be inspected by firms they choose themselves, which can become inconvenient for you.
- A private sale is generally subjected to a cooling off period during which the buyers have a legal right to change their minds.
So these are the some tip that may help you in real estate auction.
