3 Ways to Sell
Private Treaty
There are many things to discuss, plan and consider when selling your home. We endeavor to explain each step specifically and clearly to give you peace of mind. Here is a typical list of the different stages we go through.
- Meet you and or your family.
- Discuss your situation and reasons for selling.
- Develop and provide you a plan that suites your need and timeline.
- Discuss: presentation, home styling, marketing, open inspections and sale timeline.
- List the property in a marketing campaign including photography, sign boards, brochures and timelines.
- Discuss Open Home Inspections.
- Negotiation process in price and terms of the sale contract.
- Planning and explaining sale contracts and timelines including cooling-off periods, settlement periods and any special contract clauses.
- Negotiating with retirement villages with time lines in moving in.
- Assist and recommend cleaning services and removalists.
Expressions of Interest
An Expression of Interest (EOI) Sale takes the best parts of a private treaty ‘For Sale’ and an auction campaign and blends them together. The main features are:
- Like an Auction, your property is advertised with a deadline for the sale. This means offers to purchase must be made by a specified time and date creating an urgency among buyer.
- As in a private sale, offers can have flexible terms to purchase.
- The property will generally be advertised on the market for 5-6 weeks to allow potential purchasers to view the property. The Expressions of Interest campaign will close on a specified day and time. If there are purchasers keen to buy, the agent will ask them to complete an Expression of Interest. The fixed closing date motivates interested buyers to act and encourages competition between them.
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Auction
The auction process (This will not suit all situations but it’s worth understanding and may be worth considering).
- Have your property presented to sell. Every property will need some work… sometimes it’s a little sometimes it’s a lot. We will plan this with you. For example: de-cluttering, garden presentation, paint, carpet if necessary etc.
- The agent will market the property with all advertising that has been planned with owners or family, internet, signs, brochures, floor plans, newspaper if needed.
- The agent will do 2 letter box drops of neighboring streets.
- There are normally two or 3 weeks of open inspections and then Auction day – depending on the property.
- Contract and cooling off papers will be prepared prior to the auction, with all Auction paperwork prepared ready for the big day
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Auctions
Benefits of selling at auction
Once the hammer falls the contract is legally binding giving security from that moment. The purchaser then must pay 10% deposit there and then and pay the balance within 28 days. This gives a higher certainty and security in the sale as unlike a private treaty there is no cooling off time, the contract is binding.
Why should I sell at auction?
There are certain types of properties which historically perform well at auction. These include run down properties investors can fix up or attract those looking for a renovation project, unique properties can be hard to pout a conventional price on and auction can attract a better price and sale as bidders will pay the price they think it is worth, sometimes there is legal complications attached to a property and an auction gives a definitive sale finally you may just need a quick straightforward sale.
Property pricing
Before the auction you will need to decide on the reserve price. This is the lowest price you will accept once the bidding starts. It is important to be clear about what you need this price to be as once it has been reached there is no going back.
There can also be a price guide set for the property. This is not necessary, but if set needs to be a price that will entice bidders to attend. Not to low to give bidders unrealistic expectations as to the reserve price but encourage the bidding as high as possible.
Preparing the property for auction
After the property has been listed and marketed for people to view there will be a couple weeks for prospective buyers to view the property. Obviously, we want the property presented in the best light possible to encourage possibly buyers to make a bid.
Offers before the auction
At times an offer is made prior to auction. It is then up to the vendor to decide whether they would like to accept it or continue to auction. From our experience in the industry there are many scenarios and each situation is unique but there is always the possibility of the price exceeding the initial offer made.
The auction day
The auction will usually take place at the property. It is an individual choice if you would like to attend the auction, it can be a nervous moment but also very exciting listening to the price rising.
If your property fails to meet its reserve, it doesn’t mean you cannot sell. If selling the property is a necessity and you are open to sell at a price that is lower than the reserve, then it is still possible to negotiate a deal with a buyer. There is also the option to open the property to the market and receive offers after the auction date which has proven to also be successful if not sold at auction. Each property and situation is unique and we will discuss all options with you.
Is selling at auction right for you?
Overall, auction has the potential to drive the price up with eager bidders and if you’re looking for a quick sale, one which is quickly and legally binding, and you have a desirable property auction would be a good idea.
Expression of Interest (EOI) Sale
How do buyers know what a realistic price is for the property?
The Agent will provide a list of recent comparable sales to purchasers to show them the value in your property.
How are offers made?
Each potential purchaser will need to put forward their best and final offer (in writing) on a contract of sale. As well as a price that the purchaser is willing to pay, conditions of sale will be added to the offer, including settlement dates, finance conditions and inclusions and exclusions of the sale.
How many offers can buyers make?
The buyers have only have one chance to secure the property with an EOI sale so you can be assured they are putting their best offer in.
What happens after the Expression sale end date?
After Expressions close, offers will be discussed with you by your agent. It’s important to know that the offers are only shared with you, they are not disclosed between purchasers or anyone else.
What happens if there are no offers or offers lower than your expectations?
If an acceptable offer is not forthcoming, you can opt to negotiate with the highest offers or you may consider placing your property on the market as a private treaty sale.
Do I have to accept the highest offer made?
You are not bound to accept any offer during the campaign.
What are the advantages of an Expression of Interest Sale vs Auction?
Where a unique high value property is concerned, an Expression campaign will indicate the true value of the property through the competitive nature of the offers process.
Auctions require a 10 per cent cash deposit and an unconditional contract where an Expression sale can be subject to finance or other conditions. An Expression of interest campaign opens the market for your property to more buyers who cannot meet the strict auction conditions of sale.
An Expression sale only requires one interested buyer who puts forth their highest offer confidentially, whereas an auction will usually require multiple parties to bid against each other to bring an acceptable result. Auction bids usually start at a lower amount as buyers test the market to try and secure a bargain.
The Expression will lead to a higher price because in an Auction the highest bidder will stop once the lower bidder stops. In a tender sale this cannot happen as the buyers must submit the highest price they are willing to pay because they don’t know what others are bidding.