The property market is starting to heat up again in the Illawarra and it seems as though there are auctions happening every weekend in every street! We are often asked ‘should I sell my house by auction or privately?’
However, you might be surprised to learn that approximately 75% of properties sold in Australia are done so by private treaty. This is where the seller sets an asking price and the buyer/seller privately negotiate the terms of the sale.
That’s not to say that auctions are not as good as a private sale, but there are important considerations to take into account when you are determining whether to sell by auction or sell privately.
Perhaps you are having trouble paying your mortgage? Or maybe you’re about to add another child to your family? Whatever the reasons, you may need to sell your property urgently.
Auctions generate a sense of urgency and competition that you don’t always get with a private sale. Agents employ a short but strong marketing campaign to generate as much interest in the property as possible. Auctioneers create an atmosphere of intensity on the day, which encourages prospective buyers to bid for fear of missing out.
Private sales can lack this sense of urgency and competition – unless you have a number of parties interested in purchasing the property.
With a private sale, sometimes there is a delay between when the offer is accepted and when the purchaser signs the contract. Private sales are also often subject to a 5-business day cooling-off period. This means the buyer has time to change their mind about the purchase after they have signed the contract.
There is no cooling off period when a property is sold by auction.
If you are thinking of selling by auction, the Fair Trading NSW has some helpful information to consider.
Wollongong City Lawyers are also available to offer support and quality advice in relation to all aspects of your sale. We will help ensure your matter as smoothly as possible. Contact us on (02) 4244 4947 or send us an email.