There are two methods of sale that are most commonly used for the sale of residential property. They are Private Treaty and Auction. Each method has advantages.
A skilled agent realises that each property's marketing strategy is unique and as such both should be properly considered and explained to you:
Private Treaty
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The Seller sets the asking price
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Buyers are aware through advertising that the home is in their buyer range
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Buyers can place offers and begin negotiation immediately once the property is advertised
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Market feedback is ongoing with Agent reports.
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The Seller can adjust the price at anytime through the campaign
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Most simple and flexible method
Auction
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The Seller sets the reserve price and decides on a finite intense marketing program
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Auction can create a greater sense of urgency amongst potential buyers which may result in higher sales price as there is no ceiling price.
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You can adjust your reserve price on the day of the auction if it is not met
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The reserve price is confidential but the property is announced as on market once the reserve price is reached
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Contracts exchange on close of auction if reserve price is met.
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A deposit is payable on the day and settlement is normally 30 days following.
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Ultimately the market will determine the final sale price.
