C&G’s Guide to Selling: Auction or Private?

Tips & Advice

Selling property is a serious matter, and all vendors want to achieve the best possible result for what is likely to be their most important asset. Some vendors are drawn towards the robust auction method, whilst others prefer the relative peace of private treaty campaigns. Everyone has a different opinion on what method of sale will suit them and their property best. This C&G blog breaks down the pros and cons of both auction and private sale, so you can make an informed decision. Have a read and happy selling.

Selling via Auction

A key benefit of auction is that you as vendor will set a reserve price, which is the minimum your home can be sold for. If you attract multiple serious buyers to your auction, they will tend to bid competitively and exceed your reserve price. The best-case scenario will see you achieving a sizeable profit and the best price for your asset.

An auction campaign typically runs for 4 weeks and is a true ‘call to action’ for purchasers – they know they must make a decision about the property by a set date. Auctions create a sense of competition and urgency – as buyers need to bid publicly and make their intentions known before another interested party snaps up the property. A finite sales timeline is also beneficial for sellers, as your campaign will most likely be complete on or before auction day. Happily, property sold at auction has no ‘cooling off’ period – so once the bidder has purchased, they’re legally bound to settle.

Selling via Private Treaty

Selling via Private Treaty is ideal if you’re ‘testing the market’, or simply want a lower-pressure sales campaign. Some vendors would prefer not to advertise their property to the public market and present them via their estate agent ‘off market’ and via private treaty. When selling via private treaty, offers are made in confidence. There is significant capacity for negotiation and leverage as a vendor when undertaking a private sale – and you may sell after the first open, or after several months on market – there’s no time constraints pressuring you to make a decision. This is advantageous for sellers who aren’t in a hurry, or those who intend to capitalise on a changing market. It is worth noting that the longer your property remains on the market, the less appealing it can appear to buyers.

In private treaty campaigns, both seller and buyer maintain a sense of control – sellers can assess the market before making their decision to sell and buyers feel less pressure than during participation at a public auction. The cooling off period associated with private treaty can also act as a safety net for buyers – they may make their offer subject to conditions such as finance, building and pest inspection.

Whether you’d prefer to sell at auction or would like to undertake a sale via private treaty, it is possible to achieve an outstanding market result with Bayside’s leading estate agents Chisholm and Gamon. To discuss your preferences, reach out to our network of friendly, expert real estate professionals.