There are many different ways you can choose to sell your home in Australia. Whichever option you decide on will depend upon a multitude of factors. The four main methods for selling a house in Australia are auction, private treaty, tender and expression of interest. Here is an overview of your features, to help you come to a decision
Different Ways to Sell Your House
Understanding the options you have to sell you home will help you make the right decision
Selling by Auction
Selling by Private Treaty
Sale by private treaty requires the seller to set a price from the beginning of the campaign. Your agent and our tips on Property Value can help you with this process. Many sellers have a tendency of initially setting a higher price as they think buyers are likely to negotiate the price down. Doing this can be counterproductive, so this is when an experienced agent becomes a vital source of information. Ask for their guidance when establishing your asking price and refer to comparable sales in your area.
In general, sale by treaty gives the seller greater control over the sale, more time to consider offers by potential purchasers and the ability to extend the time the property is listed on the market (although this often leads to potential purchasers wondering why the property is not selling). Plus potential purchasers must make offers on your property ‘blind’, this means without knowing what other buyers are willing to pay.
Generally, private treaty sellers can negotiate the price and sale terms with the buyer. Private treaty sales usually have a cooling off period (5 days in NSW, 3 business days in Victoria, 5 days in QLD, 4 business days in NT, 2 business days in SA ), this means that once a price has been agreed between buyer and seller, the sale is still subject to conditions. For example the buyer may have requested a building and pest inspection or may require finance approval.
Selling by Expressions of Interest
Sale by Expressions of interest (EOI) is when you invite buyers to submit an offer to purchase your property by a specified time and date. Each potential purchaser puts forward their best and final offer (in writing).
Generally your property will be on the market for 4-6 weeks to enable you to promote your property effectively and to ensure ample time is given for buyers to look through the home, finalize their finance and determine the price they are willing to pay.
When submitting an expression of interest, you need to include the a price you are willing to pay, conditions of sale, such as settlement dates, finance conditions and inclusion and exclusions of the sale.
At the end of the sale period the vendor will review submissions and choose the expression of interest that interests them the most.
If an acceptable offer is not found by the purchaser, the property may be place on the market as a private treaty sale or EOI’s may be called again.*
Make sure – if you are putting in an offer, remember that you may only have one chance to secure the property, so put your best foot forward so you’re not disappointed later on.*
Expressions of interest provide you with the benefits of a private treaty sale but with the urgency of an auction without the potential stress
What to do on Auction Day
On site auctions require preparation by the seller as there is likely to be a lot of people in your home for one last inspection, so be sure your home is still looking its best. You may pick up a buyer at the last minute and you certainly don’t want to deter buyers that are there to bid.
Inform your neighbors of the auction day and time, ask that they do you a favor and keep noise to a minimum or go one further and invite them to the auction.
A professional auctioneer will make sure the auction process happens in an orderly and legal manner. They will be able to encourage competitive bidding and a fun, energetic atmosphere. Your agent will assist the auctioneer by encouraging buyers to bid and will also need to confirm with you once your reserve price has been reached.
Set up a suitable area to hold the auction. Usually it is held in the garden or on the front footpath, however your agent and auctioneer will be able to guide you. Make sure you agree with your agent whether they want you to be present at the auction or to hide away. The auctioneer and/or agent may feel it is better that you are not present at the auction, as in your excitement you may telegraph your position to buyers and therefore affect further bids.
All bids at the auction must be acknowledged and recorded by the auctioneer or their assistant; this ensures there is no misunderstanding over who has bought the property and for how much.