Different Ways of Selling a Property in Australia 2022

What Are the Different Ways of Selling a Property in Australia 2022

If you’re in the process of selling a property, you may be wondering what different methods you can use. There are advantages and disadvantages with each method of selling, so it’s important to explore your options carefully before you decide.

In Australia, there are four different ways to sell your home – auction, private treaty, expression of interest or without an agent. Every home is unique, as is every vendor, so the process of selling a home should reflect your needs, your property and your best chance of getting a good price. Consider things such as:

  • How quickly you want to sell your home;
  • The current real estate market;
  • How much work you want to put into selling your home; and
  • Whether you are willing to take risks to get the highest possible price.

Each method has its pros and cons, and which one you pick can significantly affect how well your house sells.

 Selling your home at auction

An auction is a public event organised by the real estate agent you enlisted to sell your home. Before the auction date, your agent will help you to choose a reserve price – that is, the minimum amount you are willing to accept for your property. This way, the auctioneer knows what price to accept from the highest bidder – because if that price is not offered at the auction, the auctioneer will pass the property in. Take advise from Property Conveyancer.

The benefit of an auction is that it creates a sense of urgency among bidders and prevents bidders from withdrawing once the auction has begun. Bidders are bound by law to follow through on the sale if their offer is accepted or face losing their entire deposit amount to you.

Selling your home via ‘expression of interest’

In an expression of interest property sale, buyers submit their bids privately to your real estate agent until a set date. Potential buyers will have the opportunity to look through your house before making a bid. If your reserve price is met, the highest bidder will win the sale. If not, you will need to discuss with your agent potentially continuing to open for bids or negotiating with a buyer to try for a better price.

This is a less stressful way of selling for vendors, who simply have to choose their reserve price and wait until the agreed-upon date. The downside of this method of sale is that the blind nature of the system means people don’t have the incentive of higher offers to increase their bids.

Selling your home via private treaty

The bidding system is still held privately in a private treaty, but your real estate agent will negotiate between bidding parties to get you the highest price. Unlike the expression of interest method, potential buyers will be given a chance to up their bid based on the offers placed by others.

If you want a faster and easier way to sell your property, a private treaty is the one for you. There is still the urgency of an auction (because that phone call to say someone outbid you is sure to get your heart racing!), but you, as the vendor, will enjoy a much less stressful time waiting to hear who has the highest offer.

Selling your home via private sale

This is perhaps the most complicated method of selling your property but, equally, has the most potential to save you money.

In a private sale, you act as the agent. You are responsible for organising the listing, marketing the property, holding open houses and negotiating with buyers. For all your trouble, you save the 2-3% agent’s commission, which could be anywhere from $10,000 or $20,000 upwards, depending on the house’s sale price.

But seller beware: any mistakes in your contract could cost you considerably if your buyer takes you to court. The only way to ensure your contract and Section 32 are above board is to employ a conveyancer. A conveyancer will draw up the contract and ensure laws are being met when settling the property and exchanging titles.

If you’re in the process of selling a property, always seek the assistance of a reliable property conveyancer. Jim’s Property Conveyancing Melbourne and Property Conveyancing Brisbane and can provide you with comprehensive advice and assistance moving through your property transaction, whichever method of sale you choose. Contact Jim’s Conveyancing today on 13 14 56.

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