THE BEST METHOD OF SALE FOR YOUR PROPERTY
When deciding how to sell your property, there are three different sales methods to choose from. Most people choose to sell by private treaty or sale by auction, but recently selling by expressions of interest (EOI) has become increasingly popular.
Before deciding which one to choose, you should consider the type of property you own,
where it is, the current market, and the timeframe in which you want to sell.
SALE BY PRIVATE TREATY
Selling your home by private treaty is the most popular method of sale in Byron Bay. When you sell your home by this method, you go to market with an asking price, and your property is listed for sale at that price. Then, interested buyers submit their offers, and if they offer close to your ideal price, negotiations will begin.
What are the benefits of selling by private treaty?
Selling by private treaty offers the following benefits:
- Greater control over the sale
- Time to consider the offers made by potential purchasers
- Potential purchasers make an offer “blind”, which means that a buyer doesn’t know what other buyers think it’s worth.
- Less fuss than selling by auction
- Lower costs than selling by auction
Selling your property by private treaty is generally not as tense and stressful as selling at a public auction. Nonetheless, you’ll still be faced with important decisions when you’re presented with offers. That’s why you need to ensure you engage an agent you can trust to give you sound advice.
SALE BY AUCTION
When you sell through the auction process, the amount you want for the property is
generally not revealed to potential buyers. Instead, they’re encouraged to attend the auction and bid for the property against other potential buyers.
Auctions have become an increasingly popular way to buy and sell residential property. But before you decide to go down the auction route, it’s a good idea to do your homework and familiarise yourself with the process and what it involves.
What is the auction process?
If you decide on selling by this route, the first step is to set a reserve price. This is the lowest amount you’re willing to accept for your property, and you and your agent will nominate this price well before the bidding begins. As mentioned, this price is not shared with prospective buyers.
If the highest bid is below the reserve price, the property will be “passed in”. You then
either negotiate a price with any interested bidders or put the property back on the market.
If the bidding continues beyond the reserve price, the property is sold at the fall of the
auctioneer’s hammer.
The successful bidder will sign the sale contract and pay a deposit on the spot – usually 10%.
What are the benefits of selling by auction?
Selling by auction offers the following benefits:
- There’s a time limit on negotiations.
- You control the reserve price.
- Competition may drive up the price.
- If you don’t sell at the auction, you can sell by another method.
This fact sheet produced by the Office of Fair Trading covers the most common types of
agency agreements and gives more detail about cooling-off periods.
Click on the following link to find out more:
SALE BY EXPRESSIONS OF INTEREST (EOI)
Sale by expressions of interest (EOI) is a method generally reserved for unique and luxury properties, which have no clear comparison to guide the price. It’s a confidential sales method that’s becoming increasingly popular because of growing demand and the number of high-end properties in our area.
How does a sale by expressions of interest work?
When you go to market by EOI, the marketing campaign will generally last for 4-6 weeks. During that time, the property is usually open for viewings by appointment or open home. However, EOI is different, because at the end of the campaign, potential buyers are invited to make their best offer in writing by an agreed date.
Once the submission date has passed, the vendor and agent will get together to review the offers. The vendor can then decide whether to accept or reject an offer or begin
negotiations.
What are the benefits of selling by expressions of interest?
Selling by expressions of interest includes the following benefits:
- You’ll get a clear idea of how much your property is worth.
- An agent will encourage any potential buyer to make their highest bid.
- You may get a higher offer using this method than with any other.
- It’s a confidential process, so a buyer will have no idea how much others may have
offered. - If you don’t get the price you want, you can sell by private treaty or auction.
Much as this is a sales method that goes on behind closed doors, it does have similarities to auction because it relies on a buyer going in hard to win the property.
But, on the other hand, as a seller, you have time to consider the offers made as you would if you chose to sell by private treaty. So, in a sense, it’s a blend of the two approaches.
A strong marketing campaign is essential if you want a good outcome from selling by EOI. That said, it’s important to realise that when it comes to selling by this method, the market will dictate exactly how much your property is worth.
Find your next property with Ed Silk Byron Bay.
Call Ed Silk direct today on 0418 660 063
Related Pages
