Methods of Sale

Which is the best method of Sale for my property?

This is the most frequently asked question which Vendors ask their agent. We fully believe that every Vendor requires and deserves an individual marketing approach according to their current situation. The following factors should be considered prior to selecting the most appropriate method of sale:

  • The property’s location, features and attributes.
  • Your motivation to sell.
  • Your desired timeframe.
  • The present economic conditions – Buyer’s or Seller’s market.

Parkes Property offers all methods of sale, however we believe that creating a competitive environment will always produce the best result. In reality there are only 3 methods of sale commonly used in the state of Victoria. They are:

  • Public Auction
  • Private Treaty
  • Tender

Tender is very rarely used to sell residential real estate, so we will focus on Public Auction and Private Treaty.

Public Auction

Public Auction is a most popular method of sale in Melbourne as it creates competition amongst interested buyers therefore often pushing the sale price well above the Vendor’s expectations. It is probably the most transparent of all methods of sale as buyers must openly bid against one another to secure the property. A Vendor does not have to sell at Auction if his reserve is not met.

Characteristics of an Auction are:

  • Intensive high profile targeted marketing campaign.
  • Places a time restraint on buyers often encouraging them to submit a high offer prior to Auction.
  • Weekly Open for Inspections.
  • Marketed with a price guide or no price at all which allows the market to determine the final price and avoids putting a ceiling on the price.
  • “3 Day cooling off” period does not apply if bought at Auction or 3 days prior or after the Auction day.
  • All offers/bids must be unconditional.
  • The Vendor sets the terms and conditions of Sale.
  • 10% deposit must be paid on signing the contract.

Private Treaty

In the present market place agents have adopted many versions of Private Sale. In past decades a Private Sale would be characterized by marketing a property with a specific figure and a Vendor would usually be prepared to negotiate down from the marketed price and also on the terms and conditions of sale. Today this method is gradually becoming less popular as placing a ceiling on the price may result in selling the property for less than it’s real worth. For this reason many agents have adopted their own variation of Private Sale. You will recognize them by names such as Set Sale, Sale by Negotiation, Sale by Private bid, Expression of Interest, Fixed Date Sale and many more.

Parkes Property market their private sales under the terms of “Fixed Date Sale” or “For Sale by Negotiation”.

Should you feel that a Public Auction may be too stressful or you prefer a degree of privacy in the selling process then the following methods of sale may be more suitable for you:

Characteristics of a “Fixed Date” Sale.

  • Usually includes an intensive high profile targeted marketing campaign.
  • Places a time restraint on buyers often encouraging them to submit a high offer prior to the closing date of the campaign.
  • Marketed with a price guide or no price at all, which allows the market to determine the final price and avoids putting a ceiling on the price.
  • Weekly Open for Inspections.
  • “3 Day cooling off” applies unless the documentation has been looked at by the Purchaser’s legal representative prior to signing the contract. A clause must be included in the contract to this effect.
  • Conditions may apply but usually a Vendor will give preference to an unconditional offer.
  • Terms and conditions are usually stipulated by the Vendor but can be negotiated with the buyer.
  • A deposit of 10% is usually payable on signing the contract but this amount can be less if the Vendor agrees.
  • The sale is concluded by private negotiation, submitting all offers in writing to the Vendor so they can make their final choice.

Characteristics of a private sale.

  • Marketed with a single price, price range or no price at all i.e. For Sale by Negotiation.
  • Often has a low profile marketing campaign with lower associated costs.
  • No deadline like an Auction or Fixed Date sale.
  • Vendors can choose to have private inspections only if they don’t like open houses.
  • Negotiate the price, terms and conditions of the sale with the buyer.
  • “3 Day Cooling Off” applies unless the documentation has been looked at by the purchaser’s legal representative.
  • Does not have any open competition.
  • The sale is concluded by private negotiation.

In summary, we take a complete consultative approach with our clients. We listen to your situation taking into account prevailing market conditions and have the ability to offer all selling options available in today’s modern Real Estate practice.

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