It\u2019s the big question every seller faces: go to auction or have a private sale?<\/strong><\/p>\n Both methods have pros and cons and according to one expert, the decision about which one to choose should take into account a variety of factors, such as the location of the property, its type and style and the level of interest and timing.<\/p>\n Private sale or go to auction? Both methods have pros and cons. Picture: Getty<\/p>\n<\/div>\n Arch Staver, sales director at Nelson Alexander, says there\u2019s no simple answer as to which method is best.<\/p>\n \u201cIt\u2019s always on a case-by-case basis and very much depends on the property,\u201d he says.<\/p>\n Staver says a good agent will help vendors make the call that will get the best result. He explains the different sale methods and what vendors need to weigh up.<\/p>\n An auction is a sale held at a certain place, time and date, after a marketing campaign. A licensed real estate<\/a> agent runs the auction and sells once a reserve price is reached.<\/p>\n Auctions are governed by strict rules and regulations, which are different in each state and territory.<\/p>\n Staver says auctions are a popular method of sale, especially in Melbourne, and have many benefits.<\/p>\n He says they\u2019re particularly suited to properties that are in high demand or unique in some way. They create competition and are a transparent process for all parties.<\/p>\n \u201cAuctions can be emotional, so they inspire urgency and competition. That competitive nature can get bidders really determined and fired up. All of this tends to drive the price up,\u201d Staver says.<\/p>\n At auction, vendors also have the protection of a reserve price \u2013 the lowest amount they\u2019re willing to sell for. There\u2019s also the possibility of selling for more than the reserve.<\/p>\n Staver says because an auction happens in the open, vendors can be confident they \u201cgot the best they could\u201d for the property.<\/p>\n The biggest negative is that public nature of auctions, Staver says.<\/p>\n \u201cSome people simply aren\u2019t comfortable with having an auction, with people coming through their homes and having an auction out the front that\u2019s open to the public,\u201d he says.<\/p>\n In this case, it\u2019s possible to have a private auction, with only invited bidders, Staver explains.<\/p>\n Market insights: Get up to date information for when you sell your property.\u00a0<\/strong><\/p>\n A private sale is when a property is listed<\/a> for sale through an agent, with an asking price attached. The property is marketed and potential buyers make offers<\/a> to the agent, who presents them to the seller, who decides whether to accept or not.<\/p>\n Staver says a private sale can be less stressful for some sellers. He says private sales are ideal for properties in areas experiencing less demand and where comparable sales data can ensure the vendor the price they set is right.<\/p>\n Your home needs to be in demand in some way for an auction to be successful. Picture: Getty<\/p>\n<\/div>\n The whole point of the auction is to inspire competition between buyers, so there\u2019s no point going to auction if the demand just isn\u2019t there, Staver says.<\/p>\n \u201cThis method of selling also offers great privacy, if that\u2019s a concern. Not everyone is comfortable with having the sale price of their property be public knowledge,\u201d he says.<\/p>\n The private sale process can also be less costly than an auction. With a private sale, there is also a cooling off period, which gives the buyer time to change their mind.<\/p>\n Staver says the decision about which method to go with should be made by the vendor and agent, in collaboration.<\/p>\n \u201cUltimately, it\u2019s a personal decision and you have to do what you feel comfortable with.\u201d<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"![\"Auction.](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/09\/06150207\/auction_bid_getty_a-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nGoing for auction<\/h2>\n
Listing a private sale<\/h2>\n
![\"rural](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/10\/18141839\/rural-house_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
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