To Sell by Auction, Private Treaty or Tender?

To Sell by Auction, Private Treaty, or Tender?

Every house is unique, and the best method of sale can vary depending on the property and location. To achieve the highest sales price, it’s essential to talk to your real estate agent and do your research. Here’s a breakdown of the different methods to help you decide the best approach for your home.

By Auction

Selling by auction means you’re effectively setting a minimum price you will accept for your home. Setting an auction date creates a sense of urgency and a fear of missing out.

Many auctions involve a four-week marketing campaign, generating a lot of buyer interest in a short amount of time. One of the benefits of selling by auction is that there’s no price limit—only a minimum or reserve amount set. In some states, buyers can be given a price guide, but this varies depending on local laws.

Private Treaty

Selling your house by private treaty, also known as private sale, involves marketing your home for sale at a specified price. This method gives buyers a clear indication of the price you want, helping to start the negotiation process.

Without an official selling date, selling by private treaty may sometimes be slower than an auction. Private sale contracts usually have a five-business-day cooling-off period, though this varies by state. Selling by private treaty allows you to negotiate the price and terms of the contract. After a price has been agreed upon, the sale may still be subject to conditions such as building and pest inspections or finance approval.

Tender (Expression of Interest)

Selling your house by tender, also known as expression of interest, invites potential buyers to submit offers to purchase your property. Buyers submit their best and final offers in writing by a specified date, including proposed settlement dates, finance conditions, and other conditions like building and pest inspections.

Selling by tender is similar to an auction, creating a sense of urgency and generating competition but without the stress that can come with auctions. At the end of the tender period, you can review the submissions and choose the one that suits you best. If you don’t receive an acceptable offer, you can then put the property back on the market.

Timing is Critical

With all three sales methods, timing is critical, and the first four weeks are generally the most important period to attain the best price for your property.

Welcome Home

At JKL, we treat you like family, ensuring you’re well-informed and confident in your selling journey. Whether you choose to sell by auction, private treaty, or tender, our experienced team is here to guide you every step of the way.

Experience our JKL real estate family. We’ll put the welcome mat out for you!