When it comes to selling a property in the real estate market, there are several different methods of sale to consider. Each method offers its own benefits and considerations. Understanding these options can help you make a more informed decision that can help you to achieve your desired outcomes. Let’s explore the common methods of sale: Auction, Private Treaty, Expressions of Interest and Off Market.
Auction
Auction is one of the most popular methods as it creates a dynamic and transparent platform for selling a property. By setting a clear date for the sale, auctions create a sense of urgency and excitement among potential buyers. The competitive bidding process during an auction can drive up the final sale price as motivated buyers strive to outbid each other. Auctions also offer the advantage of an immediate, unconditional contracts, providing certainty and security for the seller.
Private Treaty
On the other hand, a Private Treaty sale allow the seller to determine the asking price for the property before it hits the market. This method is arguably the most popular as it provides flexibility and control. The seller can choose a single figure or a price bracket for their property. Additionally, private treaty sales may be conducted with or without an advertised price, giving the seller the option to engage with potential buyers confidentially and individually. Unlike Auctions, Private Treaty sales can cater also to those buyers with specific conditions, such as subject to finance or subject to sale, increasing the buyer pool and driving up demand for the specific property.
Expressions of Interest
Expressions of Interest (EOI) is another method that creates anticipation and exclusivity around a property. Potential buyers are invited to submit their offers confidentially before a specified closing date. This method cultivates a competitive environment and often results in achieving the maximum market value for the property. EOI campaigns attract highly motivated and qualified purchasers who recognise the unique value of the property and are willing to submit their best offers.
Off Market
An off-market sale refers to a real estate transaction that occurs without any public advertising or listing on the open market. Instead, the property is sold privately, usually through direct negotiations between the seller and a real estate agent’s network of prospective buyers. Off-market sales are often sought after by those looking for exclusive or discreet transactions and without the need of Open for Inspections or marketing costs. They can provide opportunities for buyers to secure properties that are not available to the open market or competitively priced.
When deciding on the best method of sale, you should consider factors such as the property’s uniqueness, market conditions and your own preferences suitable to your circumstances. Auctions can be effective for generating urgency, securing a quick sale and are perfect for those properties with a diverse and broad buyer demographic. Private Treaty sales offer more control and flexibility and also giving the chance to increase your buyer pool, allowing for offers to be submitted subject to conditions. Expressions of Interest campaigns are ideally suited for unique, one-of-a-kind or exclusive propositions and can create a highly competitive atmosphere, attracting motivated buyers with specific requirements.
Ultimately, each method has its advantages. The choice should be based on the property, market conditions, and your individual goals. A strategic approach tailored to generating maximum buyer interest is crucial in achieving the highest possible price for the property.
If you’re considering a sale and are unsure as to the best method to sell your property, contact one of our Executive Property Specialist today.