Are you using the most ‘popular’ methods of selling property because of what you’ve heard from friends and family? Remember there’s more than one way of selling your home and we recommend considering all your options and their potential results before committing to a process.
Here are the main methods of selling property:
Public auctions are a popular way to buy and sell property, but most people enter the process blind. For an auction to work, you need at least two serious buyers. Many sellers get so caught up with the urgency, competition and excitement of the auction, they don’t realise these buyers aren’t bidding at the highest price they’re willing to pay. This is because the highest bid will only ever be driven by the underbid and if there is only one bidder, then the price will stall. Ultimately, while the bidder may have gone higher, they didn’t have to in this public auction system.
Private sale/silent auction/private treaty
This process is less daunting for both sellers and buyers. An agent will list an initial asking price and buyers will formally submit their offers, which are completely confidential. This way the buyers can’t find out what their competition has submitted, so they are genuinely putting forward their highest offer. Private sales don’t have an end date, which takes pressure off both parties involved in the buying and selling process.
This is similar to a private sale, but there isn’t usually an initial asking price or price range given and there is a set end date. After this date, prospective buyers formally (and confidentially) submit their best offer. The seller can choose to accept the highest offer, enter negotiations or re-list the property if the desired price is not reached.
Before making any concrete decisions about which method is best, make sure you do your own research as well as meet with various real estate agents to hear their suggestions on how to get the best price for your home.