THE GUIDE TO SELLING YOUR HOME
Step 4 - Private Treaty Vesus Auction
Private treaty
Private Treaty is when you set the price at which your house will be sold to the public. Your Agent will negotiate the sale price with the prospective buyer in private
- Most common way to sell your home
- Time to consider offers by potential purchasers
- The ability to extend the time for which your home is for sale
- Potential purchasers must make offers for your property 'blind', without knowing what other buyers think it is worth
- Savings on the expenses of an auction
- Can often take a longer time to sell your home compared to an auction
Auction
Auction is when prospective buyers come together to bid on your property with the highest bidder buying the property (subject to the reserve price being met)
- More public way of selling your home
- Competitive bidding, which means there is no price barrier. This makes an auction especially good for unusual or desirable properties, which are difficult to put a price on
- A definite sale is made (assuming the reserve price is reached)
- Controlled open house inspections
- Maximum exposure for maximum market impact
- A set date of sale encourages potential buyers to act quickly
- Identifies most likely buyer to negotiate with, if not sold on fall of the hammer
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