Choosing the agency to handle the sale of your home is an important decision.
Just because you have bought through an agent, you do not have to sell through them when the time comes. It is important to look around and to ask your friends and family for recommendations.
In the end, it is probably best that you choose an agency with whom you personally feel comfortable, who respects your decisions and who gives you the most supporting evidence for the sale price quoted.
This is by far, the most common sales method. Your property is advertised at a pre-determined price and then buyers are free to offer any price on any terms and conditions they like. After reviewing the offer(s), counter offers go back and forth until your property is sold, or put back onto the market.
It is important when selling by private treaty that, in consultation with us, we set a realistic figure for the asking price. In our experience, properties that are initially over-priced may suffer from over exposure if they are marketed for a long period of time at an unrealistic figure.
Properties that have a more realistic initial asking price are less likely to suffer from marketing staleness and our experience demonstrates that those properties usually achieve the best market price.
Points to consider:
The marketing expenditure is chosen by the owner and is in addition to the commission. It may include a colour brochure, photographs, signs, internet exposure and advertising.
Buyers usually expect to negotiate the price down unless they see it as good value to them.
With private treaty the date of sale and settlement are unknown and subject to negotiation, which gives greater flexibility to the buyer to satisfy conditions.
It is possible to sell a property subject to conditions such as finance approval and the sale of another property.
Sale by auction utilises a set cost and marketing period with a predetermined deposit and settlement date. This format is very good for properties in high demand so that it can generate competition. In conjunction with you, a minimum sale price (the reserve) is established and the price is negotiated upwards, unless the reserve is above the current market price.
Points to consider:
An auction campaign is usually held over a three-week period with the auction being held on site on the fourth Saturday. Home opens are usually conducted for a one-hour period on Wednesdays and Saturdays.
Auction is a means of sale often favoured by vendors of properties of unique attributes because it allows the market to determine the fair maximum value.
An auction allows you to pre-determine your own date of sale and settlement. In the present market conditions we recommend the settlement date be 60 - 90 days after the fall of the hammer.
The sale is of an unconditional nature. The successful purchaser is usually required to pay 5% to 10% on the fall of the hammer and the balance at settlement. Bidding can not be conditional and there is a high probability of the contract proceeding successfully to settlement.
Auction will often allow vendors to obtain the highest market price by creating competitive tension between opposing bidders. Note that this is usually only in a lively market for properties in high demand.
A detailed contract is prepared with some terms fixed & others flexible. A time and date is set for final submission. Usually for more complex sites. Different conditions can be further negotiated.
Where an expensive marketing campaign is worked out. A lot of money is spent on a huge sign, several full page advertisements and big lineage adverts. Expensive brochures and letterbox drops, plus entry on the most viewed real estate websites.
More low-key, smaller signs, cheaper advertisements and brochures. They wish to spend less money and do not believe they will achieve a higher price by spending more and rely mostly on the internet to market their property.
Where a seller asks an agent to find a buyer without advertising, or marketing, because they do not want the general public knowing their house is on the market. Difficult but sometimes occurs.
Similar to Tender or Auction, but the buyer is free to put any offer on any terms and conditions by a specified date. Not very different from expression of interest.
The property is advertised without address or home opens. Inspection by appointment only. For sellers who do not want neighbours or sticky beaks viewing.
No price is set. Sometimes an indicative price range is given. A final date to submit offers, on any basis, is set. The best offer by the date may, or may not, be accepted. Sometimes a very good offer comes in early and the owner sells at that price.