Auction
The aim of an auction is to register as many bidders & bids as possible, then get them to compete over the property to achieve the best possible outcome. Bid amounts can vary from auctioneer to auctioneer.
Prior to the auction the vendor will set a reserve price to be met & exceeded, however if the goal has not been met, the vendor is then given the choice to withdraw from auction or make a vendor bid which indicates the reserve has not yet been met.
Auctions at a glance:
- Creates urgency
- High clearance rate
- Can exceed price expectations
- Reduces procrastination
- High Profile
- Free to accept offers prior to auction
- Creates competition
Private Treaty
The property is advertised to the public with a price estimate (usually slightly higher than expectations). Vendors can vary price/negotiate with prospective buyers, there is less competition and less chance of going over your expected price with private treaties.
- You set the price
- Offers can be considered
- Less stressful
- Marketing costs are lower
- Some buyers prefer
- Conditional
EOI (expressions of Interest)
Available on market for specified time. Prospective buyers must make an offer before specified closing date. EOI gives vendors an upper hand on market indications.
- Gives indication of value
- Set date & time
- You choose the best offer
- Buyers best foot forward
- Privacy is required
Tender
Sales via tender is like a silent auction. The property is marketed for sale with or without a guided price. All prospective buyer offers must be made to the Real Estate agent by specified deadline. All offers are presented to the vendor to be considered on the deadline.
- Gives indication of value
- Set time & date
- You choose highest offer
- Buyers best foot forward
- Creates urgency
- Privacy is required
- Unmarked price