It amazes me that in Australia for the past 150 years or so, there have only been 2 primary methods of sale in real estate – private treaty or auction. Now both of these have their advantages. But both also definitely have their drawbacks.
Private treaty campaigns are relatively stress-free but they can be drawn out protracted processes that can never prove an owner actually achieves the highest price. Buyers don’t know what’s happening as there is no transparency so they are more inclined to sit on the fence and not participate.
– It can be less intimidating and all parties have the time to review their decisions
– If the vendors are in no rush to sell, there is no need to sell urgently! This can be less stressful and also gives flexibility with terms on the contract
– The vendor’s privacy is in more control as the price details can be kept confidentially from the public
– The amount of time your listing is live. With no specific end date and endless dead-end negotiations, if the property is sitting on the market for a long time, buyers may think something is wrong or vendors’ price expectations can be too high and make it a difficult conversation
– Compared to an auction, prices can drive higher and higher within minutes, however with private treaty negotiations, buyers can be in more control and put pressure on the price coming down.
A well-run auction campaign with sufficient marketing undertaken will generally realise the highest price on the day and achieve it in a concise timeframe but they are particularly stressful – to owners, but more importantly to buyers. Buyers are forced to attend an auction at a certain place, at a particular time on the busiest family day of the week, and bid large amounts of money in public. Not only that, but they also have to do it in a matter of minutes.
Owners are also on display and have to contend with the disruption of bad weather and other weekend activities locally.
– There is a sense of urgency, the property has a set date to sell after the campaign and nothing drives urgency quite like an auction
– There will always be an increase in competition which helps drive prices up
– An auction always ends with an unconditional sale and once the hammer falls, the highest bidder is obliged to buy the property and sign a contract
– There can be an additional cost for an auctioneer, however, with SoldOnline we are very competitive with our offered prices and flexible with movements of auctions
– Due to the special conditions of selling unconditionally, there may be a downfall with securing finance before auction day
Both methods clearly show their pros and cons. SoldOnline solves almost all the questions you have been asking yourself that can be involved with Traditional Auctions, so why not jump to it and help you, your vendors and buyers, and make the transition to online auctions to help maximise your sales.