Property InsightsWhich method of sale is right for you?
Next Article08 June 2023
When you’ve made the decision to sell your property but have not yet determined the sale method, it is crucial to gather information and consider the various sale processes available.
Collaborating with your experienced Marshall White real estate agent, you can make an informed decision that aligns with your goals. Here, we explore the different sale methods for your consideration:
An auction is an intensive three-to-four-week marketing campaign that culminates in a public event where interested buyers openly compete by bidding against each other. The property is sold to the highest bidder once the vendor’s reserve price (the minimum acceptable price) is met or surpassed. Auctions generate a sense of urgency and foster competition, often resulting in sale prices that exceed the reserve. Pre-auction offers may also be considered. Auctions are particularly suitable for properties in high demand or with distinctive attributes.
This method requires buyers to submit their highest offer within a specified timeframe, usually in writing. The closing EOI date motivates action from buyers, with the vendor evaluating the offers and selecting the most favourable one. EOIs offer flexibility and allow negotiations, providing the opportunity to secure the best terms and price. Competition builds from the ground up, which can lead to an exceptional result, as buyers may offer a higher price in exchange for amended terms of sale. EOIs can be effective for properties with unique characteristics or when the market is uncertain.
This process typically begins with the vendor and their real estate agent identifying potential buyers through their network, database, or targeted outreach. The property details are shared discreetly with these select buyers, who are then given the opportunity to express their interest and negotiate via the agent until a mutually agreeable agreement is reached. Throughout the process, confidentiality is maintained, and the sale is usually conducted without public marketing or advertising. Once the terms are finalised, the transaction proceeds similarly to a traditional sale, involving legal documentation, property inspections, and settlement procedures.
In a private sale, the property is listed privately with the assistance of an agent, offering flexibility, privacy, and a less pressured selling process. The sales agent helps determine the asking price, markets the property through their network, and facilitates negotiations until a mutually acceptable price and terms are agreed upon. Legal documentation is prepared, and the sale proceeds through standard settlement procedures. The vendor maintains control and confidentiality, while the agent handles the negotiation and transaction details. A private sale may take from one week to several months depending on your requirements and expectations.
The two-stage property sale process involves discreetly marketing the property to the agent’s database of current qualified and motivated buyers in the initial phase, followed by a public auction or sale to create competition and maximise the final price. The first stage tests the market, generates offers, and establishes a preliminary price range. The second stage aims to create a competitive bidding environment. This process offers privacy in the early phase and potential for higher prices through increased competition in the public phase.
To determine the most appropriate sale method for your property, consult with your local Marshall White sales specialist who will assess market conditions, property characteristics, your timeline, and your preferences to provide tailored advice. Your agent can explain the advantages and disadvantages of each method based on their expertise and experience in your local market. By working together with your agent and considering these factors, you can select the sale method that best suits your needs and maximises your chances of a successful sale.
Reach out to your local Marshall White team today to discuss your property goals and unlock an exceptional sales outcome.
