When selling a home, it is important to choose the right avenue to receive as much earning potential as possible.
The tried-and-true methods of selling a home fall into two categories, according to Marron Real Estate Principal and Licensee Rhett Marron.
“First is sale by private treaty, which is the most common in Western Australia and the second is by public auction,” he said.
While an auction is a straightforward way to sell a home, a sale by private treaty has a few tentacles sellers may want to investigate.
“There are different ways a property may be offered for sale by private treaty,” Mr Marron said. “Some examples include fixed price, a price guide, set date sales and expressions of interest.”
Realestate 88 East Perth Sales Executive Joel Cooper said there were pros and cons for each choice, which sellers would have to weigh up.
“It is important to select the best method for your property, market conditions and your personal circumstances to ensure the desired result is achieved,” he said, adding that a sale by private treaty was more transparent regarding the seller’s price expectation and allowed buyers time to inspect the home and make an offer.
“This can be both a benefit and a hindrance to a prospective sale.
“If the price is competitive, multiple buyers will typically be inspecting and making offers, thereby maximising the potential sale price.
“If there is little interest, however, the property may languish on the market due to lack of interest, leading to either a withdrawn or unsold listing, or subsequent adjustments to the listed price until the market sees value at the new price.”
Mr Cooper said for those looking at selling a home within a set timeframe and didn’t wish to cap the potential earning, an auction might be the way to go.
“In an ideal scenario, multiple bids would be made by several parties, resulting in the best market price available being accepted by the seller as the highest bid,” he said.
Mr Marron said in WA selling via private treaty was favoured, while auctions tended to be more common interstate.
“The most common method of sale is by private treaty with a trend of advertising the price as offers,” he said.
In addition to these traditional ways of selling a home, Mr Marron said he had seen online purchasing become more prevalent.
“There are various platforms around now, predominately with an auction method of sale,” he said. “They are yet to become the dominant method of sale but are certainly making inroads into becoming the norm some time in the future.”
Mr Marron said sellers should undertake their own research into which method suited their home and situation first.
“Get opinions from various professionals, take notes about the pros and cons of each method of sale and don’t feel as if you need to sell your home one way simply to keep up with the Joneses,” he said.