Every home is different, so the process of selling will also have to reflect that uniqueness. There are a few ways to sell your home depending on your needs as a vendor, how quickly you want your property to sell, the market, location, and a host of other things you’ll need to take into account with the help of your real estate agent.
If you’re asking yourself how to get your house sold fast, take the time to consider your options. Each method has its pros and cons, and which one you pick can significantly affect how well your house sells.
The three most common ways to sell are auction, private treaty, and expression of interest (EOI). Knowing how each of them works and what they offer will help you decide which one is the best option for you.
How does an auction work?
Sellers who want to attract more buyers and get the best possible sale price often choose to put their house up for auction, a selling method that thrives on the element of face-to-face competition between potential buyers.
An auction is a publicly or privately held event organised by your real estate agent on a specific date. It’s the final point after weeks of marketing and advertising, with potential buyers gathering to bid on your property until the highest offer is made.
Before the auction begins, your real estate agent will help you set a reserve price – the minimum amount you are willing to accept for your home. This way, you are guaranteed a selling price that is equal to or greater than the amount you want. Auctions also have the benefit of creating a sense of urgency – not just because there are other bidders, but because of the hard deadline of having a fixed date.
There are some downsides to auctions, including the fact that some buyers are put off by the competitive nature of auctions and may steer clear. If your property is passed in, the price will then be public, which could lead to a drop in the perceived value of the property. There is also the additional cost of hiring an auctioneer, which you should factor into your budget.
What does ‘Expression of Interest’ mean in real estate?
The goal of a sale by expression of interest or sale by tender is to gather buyers’ best offers by a specific date and time without disclosing the final price the seller is willing to sell for. How is this beneficial? The buyers will submit their best offers in writing from the start – there is no negotiating involved, which helps the process move on quicker.
Once you’re ready to sell, your property will go on the market for a few weeks. Potential buyers will have the opportunity to take a look at your house, make sure their finances are in place to make an offer, and any other thing that needs to be sorted out on their part before putting in an offer. Another advantage of this method is that it provides the sense of urgency of an auction without the stress of public bidding.
However, due to the blind nature of expressions of interest, people might put in lower offers if prospective buyers don’t know the true value of the property, or if they are being conservative with their offers.
The private treaty is perhaps the most balanced approach, avoiding the public display of the auction and the uncertainty of the tender process. With this method, you and your agent will decide the price you want for your house. Then, your real estate agent will individually negotiate with every potential buyer who has shown interest in your property.
Unlike the other methods, which can have unpredictable outcomes, this one gives you better control over the sale and allows all parties to make more considered decisions. This is the most popular method of property sales in Australia.
The best way to sell property will depend on you and your home. If you are eager to sell quickly and at the best price possible, an auction may be your go-to method; if you want a more stress-free approach, a private treaty is the one to consider. Whichever you choose, remember that your real estate agent is there to guide and lead you every step of the way to help you get the most out of your sale.
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To find out which sales method would be best for you, chat with an Upside agent today!