Should I go to an auction or have a private sale?
To auction or have a private sale? Every seller faces these two options when putting a property on sale. While both methods have their own pros and cons, taking into account several factors will affect the seller's decision of which path to traverse. Whilst Auctions are not very popular in Perth, over on the East Coast they are very popular so it's worth understanding the different options.
Standing out with an auction
An auction is a sale held at a certain place, time and date, after a marketing campaign. Generally with the Listing Agent, together with a licensed auctioneer running the auction, it gives the seller an advantage in utilising experts in dealing with the sale.
One of the biggest benefits of going to auction is the sense of urgency and competition this method generates amongst buyers. This is due to the shorter marketing and campaign period of auctions.
Auctions help your stand out from a sea of listings that gives buyers a plenty of choices available to them. Additionally, selling by auction provides reserve price protections providing the seller to set specific terms of sale.
If you're considering on going to auction, familiarise yourself with how it works. Discuss your options with your real estate agent to ensure you're on the right track.
Selling by auction provides reserve price protections providing the seller to set specific terms of sale.
Comfort in private sale
A traditional private sale is when a property is listed for sale through an agent, with an asking price or price range advertised. It is however becoming more popular in the Perth market to have a private sale even without a price or price range, and with a close date for offers to be received. The property is marketed and potential buyers make offers to the agent, with competing buyers unaware of what the offer amounts of other buyers are. The agent presents these offer to the seller, who then decides whether to accept or not.
This method offers privacy for the seller compared to auctions which, at times, is emotional due to the high sense of urgency among the bidders.
Private sales are suited to properties in areas with less demand and where comparable sales data can ensure the vendor the price they set is right. While auctions are geared to inspire competition between buyers in a stronger market or if a property has particular appeal and/or is unique, whereas private sales are for those with potentially less demand.
Choosing the right method is a case-to-case basis. Just remember that when in doubt, seek professional advice first.