Selling a property is one of the biggest decisions and investments in your lives, so you want to make sure it is done correctly.
One of the benefits of Catron Simmons Lawyers, is that you know exactly who is handling your matter and we are just a phone call away for any questions you may have. We also have the ability to be wholly electronic meaning there is no requirement to attend our office in Bella Vista unless, you wish too.
There are two main ways of selling a residential property: by private treaty and by auction.
When you sell your home by private treaty, you set a price and the property is listed for sale at that price.
Benefits of a private treaty sale:
- greater control over the sale
- time to consider offers by potential purchasers
- the ability to extend the time for which your home is for sale indefinitely
- potential purchasers must make offers for your property ‘blind’, without knowing what other buyers think it is worth.
Risks of a private treaty sale that should be considered:
- if the price you set is too high, your property may not sell
- if the price you set is too low, you may miss out on maximising the selling price.
You should also be aware that when a property is sold by private treaty, the buyer has a five day cooling-off period during where they can withdraw from the sale.
To sell through an auction process, the amount you want for the property is generally not revealed to potential buyers who are encouraged to attend the auction and bid for the property against other potential buyers.
Auctions have become an increasingly popular way to sell or buy residential property, but before you decide to go down that path, do your homework and familiarise yourself with the process and what it involves.
Setting a reserve price
The reserve price is the lowest amount you are willing to accept for your property. Before bidding begins, advise your agent what you nominate as the reserve price. This is usually not told to the prospective buyers.
If the highest bid is below the reserve price, the property will be ‘passed in’. You will then either try and negotiate a price with interested bidders or put the property back on the market.
If the bidding continues beyond the reserve price, the property is sold at the fall of the auctioneer’s hammer.
The successful bidder must sign the sale contract and pay you a deposit on the spot (usually 10 per cent). There is no cooling-off period for anyone who buys a property at auction. If the property is passed in at auction but contracts are exchanged on that same day, the cooling-off period still does not apply.
At Catron Simmons Lawyers we can help assist and take away the what often feels like a confusing and stressful time. We are here to guide you through the process and ensuring it as smooth as possible.