What’s the best way to sell a house or unit?
Ultimately, it depends. There are a number of factors to consider before deciding on the sales method that’s right for you.
In this blog, we cover four of the main property-selling methods and provide guidance on making a decision that suits your situation.
The four methods of selling a property in Perth
Private sale
How it works:
With a private sale, you set the asking price for your property. This may be firm or within a negotiable range. You or your real estate agent then run a campaign to promote your property and wait for offers to be made on it.
From here, a number of things could happen:
- You may receive a great offer that you accept straight away;
- You may receive a reasonable offer that you or your agent decide to try and negotiate to a higher one; or
- You may receive no acceptable offers and decide to change your strategy.
Private sale is the most common method for selling properties in WA.
Who it suits:
This method is suited to sellers who want to maintain a high degree of control throughout the sales process. There are no sales deadlines, you set the price, and you don’t need to spend money on auctioneer costs.
Auction
How it works:
When auctioning your property, you or your agent will need to run a campaign to promote your property in the lead-up to the day of the auction. This generates engagement and buzz from potential buyers.
On the day itself, interested parties are invited to compete for your property by placing bids. The highest bidder (above the pre-established minimum or “reserve” price, which is known to only you and your agent) wins the auction and purchases your property, provided they can supply a 10% deposit when the hammer falls.
While auctions are not particularly common in WA, they are very common on the East Coast.
Who it suits:
Auctions can be a great way to weed out unserious offers, create a sense of urgency and drive competition between buyers. This makes them a good approach if you’re confident there is interest in your property and want to avoid an extended offer and negotiation process.
End-date sale
How it works:
Also known as a tender process, an end-date sale invites interested parties to submit a written offer for your property before an established closing date. On this date, you’ll evaluate all offers with your agent and decide which to accept, if any.
Generally speaking, no sale price is included in the listing, so buyers will submit an offer based on their perception of the property’s value.
Before you begin this process, it’s important to discuss your preferences for conditions of sale with your agent. These will include things like price, settlement date, inclusions and exclusions of the sale (e.g. will any furniture be included), and whether you’ll take conditional offers.
Who it suits:
Tendering for offers puts the ball in the buyer’s court. The success of this approach will largely depend on the level of interest in your property. If prospective buyers can see that lots of people are viewing the home, they will be more inclined to make a competitive offer. If interest isn’t apparent, they may lowball. The latter eventuality will likely result in no sale, which can then damage your property’s credibility if you choose to re-list in the future.
Off-market sale
How it works:
Off-market sales are private and forgo listing the property on the open market. This method of selling is not particularly common, but the higher level of privacy can make it attractive in certain circumstances.
Who it suits:
You might choose to do this if you have a buyer in mind, such as a family member, or if the property is high profile and you only want to invite offers from particular buyers.
Choosing the right sales method
Over the course of this blog, we’ve outlined the applications of various sales methods and the kinds of sellers they suit.
That being said, generalisations can only go so far. If you’re thinking of selling, your circumstances may not fall neatly into any one category we’ve described.
That’s when talking to an expert can be useful.
At Access Property Management, our team is here to help. If you have a question about selling your property, simply get in contact and we’ll be in touch shortly to provide assistance.