The method of sale is one of the key decisions we help our clients with. Many people know that auction and private treaty are the two most popular ways to sell a property but are not sure of the benefits or why a certain method is better than the other.

There are lots of variables to take into consideration. The price of the property, the location, the time frame of the sale and of course the way the market is behaving at that time.

Softer markets tend to be better for private treaties but when the market is hot and demand is out-weighing supply, auctions are a good way to go. Just last week, Sydney recorded an auction clearance rate of 90.4% (Source: realestate.com.au) which indicates the market is matching the summer weather – hot hot hot!

So what are the benefits of both?

AUCTION

Properties often achieve prices in excess of the vendor’s expectations
A vendor has more control over the process deciding on when and where to hold the auction and what price to accept
Shorter but comprehensive marketing programs mean less disruption to family life
The value of the property is determined by the market taking price out of the equation
The campaign and sale works to a set plan
Creates a sense of urgency and moves a buying decision forward through having a set date for auction
A property cannot be sold for less than a vendor’s reserve price

PRIVATE TREATY

The vendor sets the price at which the property is to be offered
There is less pressure to accept offers as offers can be considered at leisure
The vendor determines the pace of the sale process and the pace of negotiations
Some buyers prefer having the option of a cooling-off period
Private treaty tends to be less stressful for vendors
Marketing costs may be lower

Look at each sale and each property on a case by case basis. Even if you prefer the auction method, it may not suit the property that’s up for sale. That’s where we come in. Our agents are all experienced in both methods and of course the local area. We know what works best to get you that sale price you’re after.

The Benefits of Auction and Private Treaty