What method of sale best suits you & your property?

How should it be marketed? What are the associated costs?

So you want to sell your home, but you don't know which selling method will suit you best? Should you auction your property?Maybe a private sale would be better?

Maybe something in between?

Each selling method has its advantages and disadvantages, so it's just a matter of considering the pros & cons of each method of sale.

The information below will help you to decide which method of sale suits you and your property best.

METHODS OF SALE

Public Auction? Private Sale? Sale by Tender?

Public Auction

Public Auction is a very popular method with sellers in Melbourne as it creates a situation where buyers have to compete with other buyers, rather than competing with you, the seller.

Benefits of - Public Auction method:

• Your property cannot be sold unless it reaches your 'reserve price' - however it can be sold for well above the reserve price. This is because there is no firm asking price; hence, no "ceiling" is created in the buyers' minds.
• The seller benefits because a Public Auction marketing campaign significantly raises the profile of the property through a carefully targeted, intensive advertising campaign.
• It places a time limit on buyers, encouraging them to make a high offer prior to the auction day rather than waiting to see what auction day may bring, allowing you the option of selling before auction if you so choose.
• It allows you - the seller - to set the terms of the sale.
• The purchaser has no "cooling-off" period (when buyers change their mind).
• The sale is more definite and is not conditional on buyers' finance approvals or other special conditions that buyers may try to include in other methods of sale.
• Public auctions create competition between buyers, forcing buyers to compete by pushing the price up rather than trying to negotiate it down.
• Submitting your property for auction means that prospective buyers will bid against one another at a date and time set by you. Both the seller and buyers can see how much interest there is in the particular property and, importantly, each buyer can see who they are bidding against.
• Each bidder is competing for the same property under the same terms and conditions, with the property being sold to the person who is prepared to bid the highest amount.

Private Sale

While many sellers prefer the Public Auction method, some view Private Sale as being less stressful. Private Sale, or Private Treaty, is where the property is offered at a price determined by you, the seller. When a buyer expresses interest in the property, a Philip Webb consultant negotiates on your behalf with the buyer in order to maximize the price.

Benefits of - Private Sale method:

• Can have less marketing costs associated with it - this of course depends on how long it takes to achieve a satisfactory sale.
• Removes the open competition that comes with bidding - which may suit you if you find auctions daunting.
• Can be slightly less stressful because it does not build up to a deadline like auction day.
• Enables you to negotiate on terms and conditions (such as long settlement), as well as the price.
• May have a lower profile campaign if so desired, so the investment in marketing is less.
• Many purchasers like the fact that a price is defined, and would therefore prefer to buy through private sale. However, the seller of the property must commit to a price when the property goes onto the market; therefore it is critical that you set the price correctly.

Sale by Tender

This method of sale is similar to selling by the Private Sale method in that the property is offered to the market and buyers with an interest in your property are encouraged to make an offer by a set date. This day is referred to as the close of Tender date.

When a buyer expresses interest in the property, a Noble Wilson consultant negotiates with the buyer to maximize the price they are prepared to pay for the property. Rather than offering your property at a 'set price' as in the traditional Private Sale method, this method uses a 'price range' or price guide. Thus, in the buyers' minds there appears to be room for negotiation.

Benefits of - Sale by Tender method:

• Can have less marketing costs associated with it - this of course depends on how long a campaign is put in place prior to the tender closing date.
• This method removes the competition that comes with bidding at Public Auction - which may suit some buyers who find auctions daunting & confronting. If you would like to see just how far the market will go to acquire your property without the fan fair this method may just be the right selling method for you!
• It can be a slightly less stressful process because it does not build up to an auction day where you may feel under pressure to make a snap decision.
• The Tender process enables you to set down the terms and conditions that best suit your individual situation. Any potential buyer placing an offer in on your property, are more likely to give you the terms you want.
• This method may have a slightly longer build up than the Public Auction method and it may allow you to have a lower profile marketing campaign if so desired.

What is most the important thing to remember is that it is your decision and your decision alone as to how your property is to be marketed. Whichever way you choose, rest assured that everyone at Noble Wilson is focussed on achieving the highest possible price in the shortest possible selling time.

Should you have any further questions about any of these selling methods, a Noble Wilson consultant would be only too happy to answer any queries that you may have.