Is Auction a dirty word?

YOU DECIDE, WE ARE AWESOME AT BOTH METHODS!

By Mark Lowrey

01-12-2016 | When selling your home, there are three sales methods to choose from:



•Auction
•Private treaty
•Expressions of interest



Auction



The auction method creates a deadline for buyers and gives us the flexibility to sell prior, at auction or after auction. We also do not have to set a price for your property, instead we can provide buyers with a guide so that competition can determine the final result.



Auction is the best method to use when buyer demand is strong. When there is significant competition among buyers, the sale price is often pushed higher under auction conditions.



Another consideration is the uniqueness of your property. There are very few comparable sales available to guide us on the likely selling price, and in cases such as this, auction is the best method for extracting the best market price.



Selling via auction is also very common in our marketplace and buyers are used to purchasing property this way.



Private treaty



Private treaty is the most common method for selling property. Buyers are familiar with the process and are generally more comfortable with it than auction. Buyers in our marketplace are also particularly conservative and prefer to buy via private treaty.



Another consideration is that there are several properties similar to yours currently on the market. We feel it is best to put a clear asking price on your property and let our high quality marketing do the work of informing buyers why they should consider your property first.



At our meeting, we also sensed a reluctance on your part to sell via auction. Your comfort is our top priority and we would never ask you to do anything you are not comfortable with. Selling your home can be stressful enough with adding extra layers to it! If you prefer to sell via private treaty, rest assured we are confident we can achieve an excellent price this way.



Expressions of interest (EOI)



The expressions of interest (EOI) method requires buyers to put their one and only best offer forward by a certain date. We usually ask buyers to provide their best offer in a sealed envelope delivered to our office by Xpm on the final day of the campaign.



Like auctions, EOI sets a deadline for buyers and this can help maximise competition. Unlike auctions, buyers do not know what their competitors are offering and this can encourage them to put a very strong offer forward as they only have one chance to purchase.



The potential downside is that EOI is not well understood or commonly used and we may lose some buyers due to this. However, we believe we can overcome this through open communication as well as an explanation of how EOI works in our advertising materials.