Padstow 
Source: domain.com.au
Auctions always attract attention, as the loud, emotional and often stressful spectacle is in many cases considered one of the most effective ways to sell property in a hot market.
But it’s not the only way to sell a property, and across Australia private treaty is the most common method.
The strategy you choose to get the best result will depend on the type of property and your local market.
Is an auction the best way to sell a house?
At an auction, interested buyers submit offers to buy a property at a specific time and place, normally on site but sometimes at auction rooms. The bidder who makes the highest offer is the successful purchaser, and must immediately pay a deposit, usually 10 per cent. The sale is final and there is no cooling-off period.
Auctions are preceded by a sales campaign that normally runs for four weeks. The time limit creates a sense of urgency and competition among buyers, and because offers are made publicly, it gives a good indication of the market value of a property.
It’s best to discuss the suitability of an auction with a number of agents in your area, as the effectiveness of an auction often depends on whether it is the preferred method of sale by the local demographic.
When is private treaty most successful?
Private treaty, also known as sale by negotiation, is when a property is advertised at a set price or guide. Buyers submit offers in writing to the vendor, who accepts the most favourable offer.
The agent handles negotiating with the buyer, and advises the vendor on whether to accept or decline an offer based on their estimation of the value of the property and market expectations.
Private treaty sales have a standard cooling-off period, which varies from state to state. During this time, buyers can carry out building and pest inspections or have a conveyancer conduct investigations.
This can make the sale less stressful for buyers than an auction, where inspections need to be undertaken before sale.
And, unlike an auction, submitting an offer makes it easier for buyers to determine the final price, which minimises time wasted inspecting properties that sell outside their budget.
What is an expression of interest (EOI)?
In an expression of interest or tender campaign, buyers are invited to submit their best and final offer by a certain closing date, at which time the vendor chooses the most suitable offer. Akin to a slow, blind auction, buyers can also set terms and conditions.
The closing date creates a sense of urgency as with an auction, but the private nature allows the accepted price to be kept discreet.
Are there other ways to sell a house?
If a property needs improvement to get the best result, the selling process can take weeks or even months, including time on the market and settlement. But one start-up is aiming to speed up the process, with vendors being paid in as little as seven days.
If you or anyone else you know is looking for advice on selling your home, the team at Professionals Padstow is available to offer all the guidance and answers you need. If you’d like to share your selling story on what worked for you, we’d love for you to share them with us, please comment over at our Facebook page I Love Padstow to Picnic Point
