When it comes to selling your home, choosing the right sales strategy can make a big difference to the outcome.
Auction vs private treaty
In a private treaty sale, your property is listed with an asking price and buyers submit offers through your agent. Negotiations happen behind the scenes, which can take time, but allows flexibility on price and terms.
An auction is a public sale held at a specific time and date. Buyers compete to secure the property, and once the hammer falls, the sale is legally binding and the deposit is collected.
An auction may be recommended if you have a premium/luxury home or if there is a great deal of competition from buyers in the area. People can bid in person, with the help of a buyer’s agent or from out of town by bidding online.
Five reasons to choose an auction when you sell your home
- Competition drives price: Direct competition between buyers at an auction can drive prices higher than anticipated.
Buyer confidence: Buyers can see and hear exactly what their competition is willing to pay, which gives them more transparency in the process. - Clear deadline: The fixed deadline of an auction can make the selling process more predictable.
- Unconditional sale: Once the gavel falls, the contract is binding and the buyer will lose their deposit if they back out.
- Create some buzz: Auctions can create excitement, particularly in areas where demand is strong.
What’s Right For You?
There is no one-size-fits-all solution when it comes to property sales. The right strategy depends on your property, location and current buyer demand. Your real estate agent can provide tailored advice on whether an auction or private treaty is the best approach for your sale.
Get Professional Help to Sell Your Home by Auction
Preparing for an auction involves more than setting a date. From styling and marketing to guiding you through auction day, Professionals know how to position your home to achieve a great result.
Next Steps
Thinking about selling? Contact your local Professionals agent to discuss whether an auction is the right choice for your property. With the right strategy and support, you can achieve an outcome you’re more than happy with.
