Auction or Asking price? Your sale options
There’s more than one way to sell your property – and you may have a preference of how you’d like to go about it. Here are the most common methods of selling a home.
Auction: This is a popular way to buy and sell property. You set a reserve price with your agent (the minimum price you will sell your property for) and the agent conducts the auction on the specified date. There are laws for conducting an auction, so it is better left to a professional! If bids don’t reach your reserve price, your agent may negotiate with the highest bidder on your behalf.
Auctions can result in a higher price for your property as there can be a sense of urgency and competition amongst buyers, however the prospect of an auction can also put buyers off. It’s important to discuss with your agent what the best way to sell your property is for you. For auction day tips, visit our on auction day section on the NSW Fair Trading Website.
Fixed Date Sale: You and your real estate agent work out a price range for your property, prior to it being advertised and shown. The agent invites prospective buyers to formally submit their best offer, which must be received by a specific date and time. After the set date, your agent will collect and present the offers to you. You can choose to accept the highest offer, enter negotiations or re-list the property if your desired price is not reached. Fixed Date Sales are popular in a slower market. TRUWAY has its e-tendering website to conduct these Fixed Date Sale to ensure complete transparency.
Asking Price / Private Sale. Listing an asking price or requesting offers or expressions of interest can be more appealing to buyers, as the process is less intimidating and easier to understand. Buyers will usually try to negotiate below the asking price, so it is important to discuss your expectations with your agent. Private sales are attractive to buyers but can take longer as there is not the same sense of urgency compared to an Auction or Fixed Date Sale.
For more tips and tricks including the rules around auctions click on the link below: