Sales methods
There are a number of sales methods you can choose from when selling your home. Some of the most common include:
Private Treaty Sale
This is the most common method of sale, where a property is listed with a set price and buyers can make offers to purchase the property.
Auction Sale
This is the most common method of sale, where a property is listed with a set price and buyers can make offers to purchase the property.In this method, interested buyers bid on a property in front of other potential buyers and a qualified auctioneer. The property is sold to the highest bidder, and the sale is final and binding. In some cases, a reserve price may be set by the seller, which is the minimum price they are willing to accept for the property. If the highest bid does not meet the reserve price, the property will not be sold. In addition, prior to the auction, interested buyers can inspect the property, and often have the opportunity to conduct building and pest inspections.
Expressions of Interest Sale
This method of sales is a type of sale process used in Australia, particularly for commercial and industrial properties, development sites and large luxury homes. In an EOI sale, the property is not sold by auction, but instead, potential buyers are invited to submit a written offer (or "expression of interest") outlining their proposed purchase price and other relevant details. The property owner then reviews all the offers and may choose to negotiate with one or more of the bidders or decide not to sell the property. The EOI sale process is often used when the property owner wants to test the market, or when the property is unique, and the owner wants to maximize its value.
Tender Sale
It's important to note that EOI sales are different from the tendering process. In the tendering process, the property owner will set the closing date and time, all the offers will be opened and evaluated at the same time and the property will be sold to the highest bidder.
Public Auction
These are common ways of buying and selling real estate in Australia. In a public auction, a property is put up for sale in front of a large group of potential buyers, and the highest bidder wins the property. Public auctions are typically conducted by a qualified auctioneer, who manages the bidding process and ensures that all bidders follow the rules. Before the auction, interested buyers can typically inspect the property and conduct building and pest inspections. They can also register to bid at the auction and will need to provide proof of identity and a deposit. On the day of the auction, bidders will need to be present in person or have a proxy bid on their behalf. During the auction, the auctioneer will begin the bidding at a set starting price, and bidders will raise their hands or make verbal bids to indicate their interest in the property. The auctioneer will increase the bid incrementally until only one bidder remains, at which point the property is sold to that person. It's important to note that in Australia, most auction properties, have a reserve price, if no one reaches the reserve price, the property will not be sold, and if the property is sold under the reserve price, the seller has the right to refuse the sale.
Each method has its own advantages and disadvantages, and the best method will depend on the specific property and the market conditions. An experienced real estate agency like Engage will be able to advise you on the best method of sale for your property.
So, make sure you do your research and talk to your agent about the best method of sale for your property.