When it comes to selling a property, emotions rule! Establishing exactly what you want and why from the beginning will assist you to choose the best methods of sale for you. So what do you really want? There are 3 things that remain consistent when it comes to deciding to sell:
There are many ways in which to sell your property, including the good old fashion straightforward sale! Below are the different types of sale and brief explanations for your reference.
Whichever method you and your agent choose should be right for you and your property in today’s market and your agent should discuss all your options in full to enable you to make a fully informed choice.
A private treaty works best when you expect to negotiate a sale with one or maybe two buyers. In most cases the aim is an exchanged contract that is likely to contain a cooling off period and finance/pest clause. If 2 or more buyers identify themselves you have a number of options to realise a sale, with this system the contract should be unconditional. None of these end processes should be called an EOI or Tender, even though the principals may be similar.
Primarily if you expect 2 or more interested buyers and therefore there is some ‘price elasticity’ that could get the vendor more than expected on recent sales. The aim is to sell to the highest bidder at or after auction. Auctions provide the most transparent system of identifying the ‘winning’ buyer and in addition provide an unconditional contract with no cooling off. (Remember where contracts are signed after the auction on the same day of auction the contract is still unconditional with no cooling off).
Expression of Interest
This process is best described as informal compared to the others. There are variations on what the process and outcomes may be. Generally at the closing time & date the purchasers submit in writing an offer that, depending on the deal, may contain price plus extra conditions. Usually the agent will ‘shortlist’ the best offers with the vendor and will then go back to the shortlist with the intention of increasing price and/or limiting or removing conditions. Neither the purchaser nor the vendor is bound by the process and either can ‘walk’ at any time. The aim is of course to end up with an exchanged contract, though by the nature of EOI that contract may well be conditional. Most professional or development purchasers see a property being advertised as EOI as inviting a conditional deal.