It might surprise you to know that many agents will not advise you the best way to sell your property for you. That’s right many are actually thinking about what’s the best way to sell the property for THEM!
So, understanding the different methods of selling a property in Chiswick is really important and I want you to know as much about them as possible. With this in mind, let’s explore the different options.
Private Treaty Sale
One of the most common ways to sell a property is through private treaty sale. This is when you, as the property seller, set a sale price or a suggested price range that you are willing to accept for your home. Buyers can make specific offers or ask to negotiate based on the seller’s set price throughout the process. A real estate agent then negotiates with prospective buyers on your behalf.
It is fairly common for a potential buyer to offer to purchase your property by suggesting a lower price than the original set sale price, so sellers should be prepared for some negotiations to take place. The goal for these negotiations is to achieve a final sale price that is as close to your original price as possible and that is acceptable for both the buyer and seller.
Once the negotiations have been finalized and both the seller and buyer have agreed to a price, contracts will be signed and exchanged by the lawyers, but sometimes by your agent. Depending upon how your agent negotiates the sale can be unconditional but might be conditional which means the buyers will have a cooling off period. During this period, the buyer can change their mind and withdraw from the sale. If they do this, they will pay you a small amount to cover your inconvenience. The time it takes to sell under private treaty is largely determined by how aggressive your price strategy is. For those who want to sell very quickly, private treaty with an appropriate price strategy is by far the quickest way. It is also considered by many to be the least stressful.
Another way to sell a property in Chiswick is to sell via auction. Auctions are a public sale of a property held at a specified time and place. During the auction, prospective buyers will bid on your property, and if the bidding reaches your reserve, or a price you’re happy with, when the hammer falls the highest bidder will be the successful buyer for your property.
There are many amazing stories about success at auctions but beware, there are many terrifying stories of failure also. The experience and skill of the auctioneer is critical to the process but that’s a whole new blog for a later date, or maybe a conversation over coffee.
Sales by auction are unconditional. This means that any prospective buyer should have their financial arrangements to purchase a property in place prior to the auction. They will need to pay a deposit immediately following the sale and are legally obliged to go through with the purchase. The 2 strongest reasons to go to auction are 1) you have a HOT market and buyers are scared to miss out because prices are going up rapidly and 2) If there genuinely is no way to accurately assess the value of the property by looking at similar sales in the area. Most auctions take 4 weeks of advertising and 1 week of getting ready before they happen. You can sell prior to the auction but I do not recommend it and it is normal to have a little anxiety leading up to it. An Auction is recommended if you need transparency in the sale process such as when you are one of a number of beneficiaries in a deceased estate or it is a sale forced by the mortgagee.
For those of you who have heard the term “Dutch Auction” this was originally an auction where the auctioneer gives all the bids and starts at a remarkably high price. The winner is the first buyer to bid. This puts the stress back on the buyers, but I have not ever seen a Dutch Auction myself.
The first auctions are reported to have been conducted in Babylon around 500BC when families started to auction their daughters as brides. Let’s hope we have come a long way since then.
Expression of Interest / Tender
Another way you can sell your property in Australia is through expression of interest (EOI) or Tender. This is very common for commercial properties and properties which may have a limited number of buyers or where different buyers may appropriate vastly different values to the same property.
During this process, the seller invites potential buyers to submit offers in writing by a specified date. The agent and the seller review the offers when the expression of interest date has been reached, and the agent negotiates with potential buyers to achieve a price both buyer and seller are happy with. This method of sale can be a good option for sellers who prefer their privacy and also want to put an artificial time limit on negotiations.
While we only explored the basics of each of these options, we’d love to work with you to recommend which sale method is the best for you based on your property location, type, market conditions, and most importantly, what do you need to happen and when!