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Lots of homes in Australia are sold via private treaty.<\/p>\n<\/div>\n
If reality TV is to be believed, just about every house sold in Australia goes to auction \u2013 but the truth is, the majority of residential sales use private treaty.<\/strong><\/p>\n Distinct from the dramatic auctions often portrayed on television, private treaty is the more traditional and popular sale method.<\/p>\n This is when a property is listed<\/a> for sale through a licensed real estate<\/a> agent, with an asking price attached.<\/p>\n The property is marketed, and then a potential buyer makes an offer<\/a> to the agent, who presents it to the seller, who decides whether to accept or not.<\/p>\n Typically, negotiations go back and forth until an agreement about price and terms is reached.<\/p>\n Multiple offers are often managed by the agent, with all discussions done in private.<\/p>\n How do real estate agents<\/a> perform? Find out more with this video:<\/strong><\/em><\/p>\n LJ Hooker Head of Real Estate Christopher Mourd says private treaty \u201cclearly\u201d remains the most popular sale method across Australia, followed by public auctions.<\/p>\n He says good agents, who understand market conditions and local trends, can help vendors decide which method is best for their property.<\/p>\n \u201cIn general terms, selling by private treaty is best, where there are many similar properties in an area. If there is lots of similar stock available, meaning the competitive framework isn\u2019t great and it won\u2019t be fiercely competed for, it makes sense to put a price on it and attract appropriate buyers.<\/p>\n \u201cWhereas, if a property is going to be very well competed for, as is the case in many metropolitan markets at the moment, it makes perfect sense to go to auction. With an auction, everything is clear and transparent and vendors can feel comfortable knowing they got the highest and best price on the day.<\/p>\n \u201cThe difference between the two methods is pretty simple. One is a public negotiation process, at an auction, where everyone can see everything, and the other is a private negotiation,\u201d Mourd says.<\/p>\n The actual mechanics of the process are the same, he says.<\/p>\n \u201cThe property is advertised, people inspect the property and people put in offers.\u201d<\/p>\n It\u2019s important to have a good relationship with the agent when selling via private treaty.<\/p>\n<\/div>\n When looking to sell, vendors should interview several potential agents, Mourd says.<\/p>\n Agents should look at demographics, market trends, pricing value and comparable sales in the area, before advising of a proposed sale method and price.<\/p>\n The only real risk with private treaty is over-estimating the sale price in the first instance \u2013 but this can be eliminated by a quality agent who gets the market.<\/p>\n \u201cIt can be quite dangerous to overshoot the price. It can impact on the number of days on market and ultimately, you may end up getting less. Active buyers in the market very much know market value \u2013 and so should a good agent \u2013 so the worst thing you can do is overprice,\u201d he says.<\/p>\n <\/p>\n<\/div>\n [ad_2]<\/p>\n link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"What is a\u00a0private treaty sale?<\/span><\/h2>\n
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