The Most effective method of Sale?
In determining the most effective method of sale it is important that you are aware of the relative merits of the two most common methods of sale, Private Treaty and Public Auction.
When selling by Private Treaty, a property is submitted to the market place at a set price. The agent’s roles are to negotiate acceptable offers from prospective buyers.
Experience indicates that there is a trend amongst buyers to make offers well below the vendor’s expectations. Quite often these offers are presented subject to conditions other than those specified in the Contract of Sale and on terms that favour the buyer. For this reason Private Treaty negotiations can often be drawn out affairs, involving a number of offers before a satisfactory result is achieved.
The absence of a deadline for the sale, as in auction method places the purchaser in a stronger negotiating position during the course of sale. However, if there is no urgency to sell, the market conditions dictate, Private Treaty has the potential to be a desirable and effective method of marketing your property.
There are two major benefits of a Public Auction. Firstly, Public Auction establishes a sell date. Auctions tend to stop procrastination on behalf of buyers. This encourages buyers to be astute in recognising property that fits their needs. Secondly, the price is undisclosed. This means a property is not limited to a maximum price. If competition is strong for a property, the Reserve Price may well be exceeded. In this sense, the sell price is truly a reflection of what the market is prepared to pay.
Sale by auction also has other advantages for the vendor, convenience and efficiency. Through a series of open house inspections, together with a concentrated marketing campaign, there is minimal interruption to either vendors or tenants of a property