Understanding The Different Ways To Sell A Property
There are three key ways to sell a property in Australia:
- Private Treaty / private sale
- Tender / Expression of Interest
Whilst your agent will advise you on the best method of sale for your property and location, understanding the options is important so you can make informed decisions.
Historically, McGrath have favoured auction over other methods of sale, and we’ve achieved outstanding results this way, however understanding the different options available is a good idea as every market is different.
Selling a property by Private Treaty
A Private Treaty / private sale occurs when a property is listed for sale with an asking price. Interested buyers make an offer to the agent, who in-turn present the offer to the seller. The agent will negotiate individually with prospective buyers to achieve a sale as close to the seller’s price as possible.
Traditionally private treaty /private sale gives more control to the seller, they can take time to consider offers and negotiate until they are happy to make the sale. Many markets across Australia achieve the best results using this method of sale.
Selling a property by auction
A real estate auction is a public sale of a property where prospective buyers gather to publicly bid on a property. If the property reaches the reserve price set by the seller, or if the seller is happy with the price, when the hammer falls, the property will be sold to the highest bidder. Contracts will be signed, deposit will be paid, and as there is no cooling off period the buyer is legally obliged to buy the property.
An auction by the fact it is held on a particular date and at a specific time, creates a level of urgency. By grouping all interested buyers together at one time it can also have the effect of creating a competitive environment, and as we have seen right across our network, it can help ensure the highest possible price is achieved.
Selling a property by expression of interest / tender
These methods of sale are fairly similar. They are essentially a type of closed silent auction. Buyers are invited to submit their best offers by a particular date and time. After the closing date, the seller and their real estate agent will review the submitted tenders and accept, reject or negotiate with buyers to achieve an outcome both the buyer and seller is happy with.
This method of sale has traditionally been more suited to high end or exclusive properties.
Choosing the best method of sale when selling your property
Your real estate agent is the best person to help guide you here. They will consider the following elements before recommending the best method of sale for your property:
- The kind of property that you are selling
- The location of your property
- The condition of the local real estate market, is there demand, is there a lot of competition
- How quickly you want to sell
- Your personal preferences
Your agents’ goal is to sell your property for the best possible price and the method of sale is key here. Discussing this up front with your agent is an important piece of the selling puzzle.
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