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What are the differences between an Auction, Tender or Private Treaty?
The stress of buying or selling real estate shouldn’t be compounded by a lack of understanding about common sales avenues. To help you, this quick checklist will provide the key areas to consider when deciding upon an auction, tender or private treaty process. Of course, your Real Estate Sales Agent will also provide you with the best advice for your circumstances, but it is also important to establish how you feel about each of the processes so that you can be comfortable with the approach being taken.
- You’ll generally want to go to auction if you have confidence that you will attract more potential buyers because there is a high demand for properties like yours
- You’ll create a sense of urgency
- You’ll be protected by a reserve price, or price minimum
- You’ll have no ceiling price, so enthusiastic buyers will raise the expected price
- You’ll end up with an unconditional sale contract with a defined settlement date
- You’ll have a fixed price range making it easier for prospective buyers to know if the property is in their price range
- You’ll get qualified buyer feedback and the flexibility to adjust the sale price according to local market conditions
- You’ll enable prospective buyers to make offers which can lead to a faster negotiation process
- You’ll find that a private treaty is a proven style of successful marketing for premium properties that fit a certain criteria
- You’ll understand that a private treaty can be finalized either quickly or slowly because there will be a degree of negotiation back and forth
- You’ll appreciate that all negotiations are kept private so it encourages a potential buyer to put forward their best offer. They won’t know what another buyer has offered. You also won’t risk an unsuccessful auction if your asking price is above market value
- A tender sells to the highest ‘bidder’ who submit their offers by a cut-off date
- Unlike an auction, one bidder is all that is needed to secure the transaction
- A tender demonstrates that you are confident that your property will sell successfully
- A tender enables you discretion of sale price and an ability to let the market dictate the price a buyer is prepared to pay
- A tender will acquire you the highest sale price without the potential stress of an auction
- A tender creates urgency by having a close-off date
- A tender creates a competitive, yet discreet, sale process
- A tender offers a shorter marketing campaign because there is a cut-off date
- A tender is open to a wider arrange of buyers; for example, those who cannot bid under auction conditions
Amkar Real Estate will provide you with the best advice on which avenue is most suitable for you and your property in order to obtain the optimum results.
For advice, a free market appraisal or further information on items contained in this newsletter, please contact Amal Khodair-Vemana on 0401 242 352 or Sega-Elias Awkar on 0423 434 173.