Selling your home is stressful. There’s a lot to consider, from choosing the right agent to staging your home. In such a competitive marketplace it can be difficult to weigh up what is the best way to secure the highest price for your property, so comes one of the hardest decisions of all: auction versus private treaty? Justin Ferguson, Founder and Principal of Ferguson Property Agents, shares the pros and cons of these two popular methods.
Auction
Pros:
• Flexibility: As the property owner you have the ability to choose the date of sale, settlement date and make sure all the terms suit you.
• More security: Provides the protection of a reserve so your property won’t sell unless bidding reaches a pre-agreed level.
• Win-win: Both buyers and sellers can work towards getting a result on auction day, which means the vendor can get a premium through spirited competition.
• Spoilt for choice: The option to sell your home one of three potential ways: prior to auction, auction day or through negotiation.
Cons:
• Higher cost: In terms of a marketing budget and other unprecedented costs.
• Personal preference: Some buyers may not like the auction process and could be deterred from viewing your property.
Private Treaty
Pros:
• No rush: Provides more time to consider offers from multiple buyers. This is suited to sellers who don’t have the urgency to sell.
• Privacy: The ability to withhold certain information from the general public.
Cons:
• Uncertainty: Subject to a cooling-off period where the buyer could change their mind.
• Lengthy: No specified end date means it may take much longer to sell your property compared to selling it via auction.