SALE BY PRIVATE TREATY
This involves setting an asking price for the property and offering it for sale. Whilst many people initially feel more comfortable with this method of sale, there are a few things to consider before submitting your property for sale in this manner.
Firstly, you must determine a realistic initial asking price. This can be difficult as the true value of any property is what the market is prepared to offer. If nothing similar has been recently sold in your area, finding a reliable benchmark can be challenging. If your property is under-priced, it will sell quickly and the price cannot be maximised. If you over-price your property, it may stagnate in the marketplace and run the risk of becoming “stale” or being over-exposed.
Your local First National agent will have an excellent knowledge of recent comparable sales in your area and will assist you to arrive at a realistic price expectation for your property, if you choose this method.
While private treaty may seem like a more relaxed approach to the sale of your property, remember, that there’s also less incentive for buyers to move quickly to complete their negotiations and to complete their purchase of your property. They’re more relaxed as well! There’s no time limit for the sale so, your prospective buyer may be tempted to use this to their advantage.
In the absence of any competitive offer from a second party, your agent’s ability to influence the final price in an upward direction may be somewhat restricted.
SALE BY PUBLIC AUCTION
An auction is a public sale where buyers are brought together to compete with each other to purchase a property. If the highest bid is acceptable to the vendor (the seller) the sale occurs upon the fall of the hammer. The property is ‘passed-in’ if the highest bid fails to meet the vendor’s reserve price.