| To sell by auction, private treaty or tender?
When it comes to selling your house, there are three primary methods: auction, private treaty, and tender. Every house is unique, and different methods perform differently depending on the property and location. To achieve the highest sales price, it is essential to do your research and talk with your real estate agent about which method suits your needs. Keep in mind that rules and regulations may vary among states and territories.
Selling by auction means setting a minimum price you will accept for your home. An auction date creates a sense of urgency and stimulates buyer interest. One benefit of auctioning your property is that there is no upper limit on the price, but some states require a minimum or reserve amount. However, it’s illegal to provide a price guide in some states.
Private treaty, also known as private sale, involves marketing your home at a specified price. This method allows buyers to get a clear indication of the price you want and begin the negotiation process. Although this process can be slower than auctions, private sale contracts usually have a five business day cooling-off period. The advantage of this method is that you can negotiate the price and terms of the contract.
Selling your house by tender involves inviting potential buyers to submit an offer to purchase your property. Buyers submit their best and final offer, including proposed settlement dates, finance conditions, and any other necessary conditions like building and pest inspections. Selling by tender generates competition and a sense of urgency, similar to an auction but without the stress. At the end of the tender period, you can review the submissions and choose the one that suits you best. If you don’t receive an acceptable offer, you can put the property back on the market.
Timing is critical in all three sales methods, and the first four weeks are generally the most important period for attaining the best price for your property. Ensure that you do your research and talk to your agent before choosing the best method for selling your home.
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