An auction is where your property is offered for public sale through a competitive bidding process. Before going ahead, bidders must be registered and you’ll have set your reserve price (which remains confidential between you, your agent and the auctioneer). The auctioneer declares when the reserve price has been matched or exceeded. The winning bidder is legally obliged to buy your property and put a 10% deposit down straight away.
– If your property doesn’t reach the reserve price, your agent can negotiate with registered bidders afterwards.
– Its competitive nature can help you get the best possible price. It’s particularly effective in a high-demand market.
– Its public nature is often the best way to help you determine your property’s true value.
– The campaign leading up to your sale date – auction day – is usually four weeks, which gives you time to plan and adjust your own living situation.
– The marketing costs are generally higher, but it also allows you to contain your marketing costs, assuming it sells on the day.
– Winning bids are legally binding so you don’t have to worry about withdrawals or delays.
– You’re still free to accept any attractive offers before auction day.
The traditional private sale means setting an asking price or ‘offers over’ and selling via private treaty. Your agent can negotiate with interested parties to settle on a higher price if possible. Once the price is agreed, a contract is amended, signed and exchanged. Although this is a flexible and less intimidating method, it doesn’t have the urgency of an auction or closing date to really push your sale along.
– A fixed price attracts prospective buyers who are looking for and know that they can afford a property like yours.
– Canberra buyers generally prefer a listed price when searching for property and this results in higher open home attendance and interest.
– Buyers often find this less intimidating than an auction so may be more likely to submit an offer.
– Unlike at auction, you’re not under pressure to make an instant decision.
– You’re free to define or negotiate the settlement terms.
EXPRESSION OF INTEREST
The expression of interest method is also known as a ‘set date sale’, similar to a tender process. You set a price range but do not make it public. Then your agent shows your property over about four to six weeks. Interested parties submit their best, final offer in sealed envelopes which are shown to you after the set date. You can accept the highest offer, negotiate the settlement terms further or put the property back on the market if you’re not happy.
– It suits premium properties and slower markets as an alternative to auctions that usually deliver lower clearance rates in this space.
– Prospective buyers feel as though they only get one chance so are likely to put their best bid forward.
– Since bids are sealed and not publicly shown, you have privacy and control during the process.
– The campaign leading up to your deadline is usually four to six weeks, which gives you time to plan and adjust your own living situation. It allows you to contain your marketing costs.
– You’re not pressured to make an instant decision.