Do you need to sell property quickly? Perhaps you are having trouble paying your mortgage? Or maybe you’re about to add another child to your family?
Whatever the reason, you may need to sell your property urgently and sometimes a sale by auction is the best way.
About 25% of properties in Australia are sold by public auction. The rest are sold by private treaty, where the seller sets an asking price and the buyer/seller privately negotiate the terms of the sale.
This doesn’t mean auctions are not as good as a private sale. It just depends on your situation and circumstances.
If you need a quick sale, then an auction is often the best way forward.
Auctions generate a sense of urgency and competition that you don’t always get with a private sale. Agents employ a short but strong marketing campaign to generate as much interest in the property as possible. Auctioneers create an atmosphere of intensity on the day, which encourages prospective buyers to bid for fear of missing out.
Private sales can lack this sense of urgency and competition – unless you have a few interested in purchasing the property who start bidding between themselves to make the highest offer.
With a private sale, sometimes there is a delay between when the offer is accepted and when the purchaser signs the contract. This is because private sales are often subject to a 5-business day cooling-off period. This means the buyer has time to change their mind about the purchase after they have signed the contract.
There is no cooling off period when a property is sold by auction.
If you are thinking of selling by auction, Fair Trading NSW has some helpful information to consider to properties in NSW and the ACT government has published a handbook for properties in ACT.
We can also provide you with legal advice on selling a property by auction, and all aspects of your sale. Contact our office for a fixed fee quote or a free 15 minute consultation.
