In Australia there are three popular and very different ways to sell your home. Before choosing a method, it’s always recommended that you listen to what your real estate agent recommends as they have a clear understanding of the current market and how to get the best return. Auction might be the quickest way to get the best results for some houses, but it might not be the best way to sell in your market.
This is a very popular way to sell property in Australia. The reserve price is set by you and your agent, this is the minimum you will sell your property for. On the date of auction, potential buyers will place bids. Once the reserve price is reached, the house is officially on the market and will be sold to the highest bidder. If the bids do not reach the reserve, the agent may negotiate with the highest bidder on your behalf or ask you privately if you wish to sell at a lower price.
Once the house is declared sold, an immediate deposit of usually 10 per cent of the purchase price is required after the auction. The balance is paid on settlement, normally set by the seller and is usually 30, 60 or 90 days. The sale is only finalised when the contract has been signed by both the seller and the buyer and all relevant cheques and transfers have been made.
In many cases, auctions can result in a higher selling price as buyers are motivated by the competition and bid with urgency. However, the prospect of an auction may also turn potential buyers away. If you’re marketing your house towards first home buyers, you may want to rethink the auction as they are less likely to bid openly for property.
One of the most appealing methods of selling a house to attract a wider market of potential buyers is to adopt a private sale. The asking price is listed and offers or expressions of interest are requested. Buyers will generally try to negotiate below the asking price but your agent will discuss realistic expectations with you to attract the right buyers.
Selling privately may take longer than selling at auction as prices can be negotiated for as long as it takes to reach an agreed amount. However, this process is much less intimidating to many buyers and is generally popular with first home buyers. Once you have accepted an offer from a buyer, a deposit is paid with the remaining balance paid on settlement.
Open homes operate in the same way that auction open homes do. The only difference with the selling process is that the home is not sold on a specific date you have set.
Fixed date sale
This is a private sale where you and your real estate agent choose a price range for your property. The price is worked out based on the current market value. Prospective buyers are then invited to formally submit their best offer which must be received by a specific date and time. Once the offers have been collected by your agent, you can choose to accept the highest offer, enter negotiations or re-list the property for sale. This is a great method to use in a slow market.
Once you’ve sold your property and it’s time to move house, get in touch with Grace. We provide expert residential removal services so you can focus more on selling your house and less on the moving process.