Finding it hard to decide between auction and private treaty

Discussion in 'The Buying & Selling Process' started by ardle, 14th Feb, 2018.

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  1. ardle

    ardle Member

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    I'm trying to sell my unit in NSW. The unit is in a strata building and the suburb is tagged as high demand market in realestate.com.au. I've read about the pros and cons of both auction and private treaty. Had a chat with a few real estate agents a couple of weeks ago. Some of them were recommending auction but for some reason I feel more comfortable with private treaty. How should I decide? Finding it hard to come to the conclusion.
     
  2. hobartchic

    hobartchic Well-Known Member

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    Auction has marketing benefits and puts a time limit on the sales process (assuming it sells). You can do a combination of for sale by auction, offers considered prior to auction. Then if an offer comes by you like, take it. Or proceed to auction. Best talk to an agent you trust who knows the local market conditions.
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    We normally do auction first - it then reverts to private sale anyway (the agent's in Melb usually don't charge any "extra" for an auction - although you might ask for a discount without an auction)

    The Y-man
     
  4. ardle

    ardle Member

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    Are you saying when the highest bid doesn't meet the reserve price in auction, the property is then goes to private sale? Doesn't that become less favourable to the seller as the highest bid is now revealed?
     
  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    You can run it as an auction campaign and if there's clearly not the demand a few days before auction, you can cancel the auction. Highest price not revealed. Obviously then, any buyer will realise that there isn't OTT competition for your property. Could be ok though since a lot of buyers don't want the stress or uncertainty of trying to buy at auction.
     
  6. Trainee

    Trainee Well-Known Member

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    How have recent auctions in the area done?
     
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Yes, but then you as a seller get an understanding of where the market is (as opposed to where you want it to be) and you need to reveal the price you want for a private treaty anyway (usually the upper limit from where everyone works down from.

    And here in Vic (and I think elsewhere) auctions are unconditional. Doing private treaty means buyers can drag you along for weeks and then crash the contract on finance or B&P.

    The Y-man
     
  8. tilt10

    tilt10 Well-Known Member

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    Jenman says auctions only ever get second best price. He is correct . Private treaty is better . I like "offers above"or "offers" from then you can't be crunched. Get on FSORBO and sell it yourself. It is not rocket science..
     
  9. 738

    738 Well-Known Member

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    Lol at auctions only ever get second best price comment.

    Come to some of the auctions in my area that get in some instances have achieved 1m over reserve. No chance of that happening via private sale.
     
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  10. Sackie

    Sackie Well-Known Member

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    Your sales team should be outlining the best marketing strategy based on the stock your selling, market conditions and past history of best overall results . You shouldnt be left guessing which way to go. If your second guessing their feedback then you need to have evidence to support it otherwise it defeats the purpose of engaging a sales expert.
     
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  11. Sackie

    Sackie Well-Known Member

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    Yeah, nah.
     
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  12. tilt10

    tilt10 Well-Known Member

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    Yes yes
     
  13. tilt10

    tilt10 Well-Known Member

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    A reverse auction gets the best price. A standard auction always gets the second best price.
    The top bidder would probably pay "MORE"
     
  14. tilt10

    tilt10 Well-Known Member

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    A vendor never gets crunched in a reverse or dutch Auction if he sets the price . Would make life easy wouldn't it.?
     
  15. 738

    738 Well-Known Member

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    Agree to disagree on that comment
     
  16. tilt10

    tilt10 Well-Known Member

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    Thats my favourite saying. You can't use it. Maybe this one time
     
  17. 738

    738 Well-Known Member

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    Thanks babe
     
  18. Barny

    Barny Well-Known Member

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    I’m in a similar scenario selling a unit in a hot market. Spoken to 6 agents and 3 have said auction, and other 3 said private. I will choose the method the agent I choose to go with decides on.
     
  19. kierank

    kierank Well-Known Member

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    So a female vendor may get crunched ...:eek:
     
  20. tilt10

    tilt10 Well-Known Member

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    He or she again
     

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