Different ways to sell a home.
When it comes to selling your home, there is not a one size fits all solution. Many factors come into play when deciding what method, such as fast you need to sell and how private you want the sale to be. There are four common ways to sell property in Australia; private treaty, auction, expression of interest and off-market. Although auctions are a preferred sales method for many, choosing one comes down to your personal circumstances.
With Australian real estate in hot demand, your real estate agent will advise you, based on your circumstances, the best sales method. Each has its benefits and disadvantages, so knowing what they are positions you to make the best decision on what sales method is right for you.
The most common sales method in Australia is a private treaty, which is where the property goes to market with an asking price, and interested buyers submit their offers to start a negotiation. Ideal for those who want more control and want to avoid the costs associated with auctions. The downside of a sale by private treaty is that it’s common for the final sale price to rarely go above the asking price. Having an experienced sales agent who clearly understands supply and demand in your local area and is a strong negotiator is key for a successful sale by private treaty.
Selling via auction is extremely popular for its ability to drive up the final sale price by using the excitement and competitiveness of buyers in a live auction situation, whether it be a public or private auction. Auction live-streaming and bidding site Gavl found that 90 per cent of Sydney and Melbourne agents believe that you get a higher sales price through the auction method, making this their preferred method. For auctions to be successful, you need to have an agent with extensive knowledge and expertise and a comprehensive marketing campaign leading up to auction day.
Expression of Interest (EOI)
Expressions of Interest are when buyers submit their best offer and any conditions by a set deadline predetermined by the sales agent. The vendor then chooses the most suitable offer. This type of selling method is typically used for expensive homes, development sites and unique properties. EOI’s also allows the vendor to see what level of interest there is in their property before committing to the costs of a full marketing campaign or auction.
Selling your home off-market means that you are willing to sell if you’re presented with an acceptable offer, but you don’t want to promote that you’re selling. Realestate.com.au explains there is a level of anonymity that comes with off-market sales that appeal to high profile people, people having financial difficulties, relationship breakdowns, or dealing with a deceased estate. Off-market usually means the vendor wants a quick sale, which can come with more conditions, shorter settlement periods, and larger deposits. This can be a major turn-off for many buyers.
To learn more about the right sales method for your property, speak to your local Belle Property real estate agent.