Selling by private treaty is the most popular way to sell your home and is great alternative to the tension-filled experience of watching your home go under the hammer at auction.
Private treaty sales is the most popular method of sale with approximately 75% of homes sold this way across the country. It allows a slower, more methodical marketing approach.
Negotiation with potential buyers is conducted in private and in a timely fashion rather than be subjected to the stress that comes with an auction.
As your agent, it allows us to conduct negotiations with various prospective buyers to help define the true market value of the property.
At the beginning of this process, the owner and agent may agree to what is known as a preview price guide.
While we will have a good sense of the market value of your home, it is not necessary to disclose a specific price early in negotiations. Instead, we will often show the home to a limited audience and get feedback to get a sense of what that preview price should be.
Once the price has been confirmed, it will be made public when the property is advertised.
Private treaty sales are often preferred by sellers who want some control over the final price of their property and don’t believe the pressure of an auction is the best way to determine the value of the property.
There is some logic to this. It is difficult to be confident that true value is achieved at an auction because the process delivers a result at a single moment in time, which is often influenced by factors such as the number auction attendees and their behaviour.
Private treaty sales are often favoured in a less than buoyant market and by sellers who are in no hurry to settle. This approach provides an opportunity for greater flexibility over settlement periods and allows buyers who might not yet have all their finances in place to enter negotiations in good faith.
The key reasons to sell by private treaty are:
- A fixed price tends to attract genuine buyers who are seeking a property in that price bracket
- Price is determined by negotiations with interested buyers rather than within the helter-skelter action of an auction
- There is no time limit on the sale, unlike an auction. This means time on market might be longer.
- The slower pace gives your agent time to obtain a better assessment of market value of the property
- The price can be made public or provided upon application
- Good faith negotiations can be conducted with those who have not yet obtained suitable finance