We often get questions in relation to what’s the best way to sell property. This is a question that a lot of people – particularly real estate agents – have a lot of opinions on! Some real estate agents swear by auctions. Others prefer to be patient and to sell the property through private treaty.
Selling your property can be stressful and no doubt you wish to get the best price possible for your property. So what is the right way? Generally, we think that this isn’t a question with clear answers and it will depend on what you intend to achieve and how you want to achieve it. There are benefits and there are drawbacks of both methods.
This month we’ll focus on the benefits of a sale by auction.
Benefits of Auctions
- Potential to sell the property at above market value due to competition by the auction attendees.
- Time limit for auction means that property is likely to be sold within the time limit or at auction.
- Suitable for situations where the value of the property is in dispute.
- Suitable for situations where the value of the property cannot be determined due to unique aspects of the property.
- A sale at an auction does not allow the purchaser to exercise any cooling off rights.
Drawbacks of Auctions
- Loss of control of what the sale price is.
- Dependent on interest of attendees and the turnout at the auction.
- Potential to sell the property for less than market value if not much interest in the property or if attendees are not competitive.
- Failure to sell property at auction could attach negative stigma to property.
- Purchasers may be put off by competitiveness and the disclosure of how much they are paying for the property.
As you can see there are both advantages and disadvantages of a sale by way of auction. At the end of the day however you should consider what’s most suitable for your purposes. Tune in next month, where we will discuss the advantages and disadvantages of a sale by way of private treaty.
If you have any questions, please don’t hesitate to contact us or drop us an e-mail through the quick enquiry form!
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Associate Solicitor - Phang Legal