Latest / Your Local Real Estate Expert - The Schultz Realty Podcast / EP02: Auction or Private Sale - What Works Best in our Area?
Transcript
- Hi, I'm Sarah Schultz and welcome to your local real estate expert, the Schultz Realty Podcast. As the award winning number one agent and agency for Mount Warren Park, Barr, Scrub and Windaroo, I've been helping buyers find their dream homes and exceeding sellers expectations on price and service in our area for over 10 years. Known as the property matchmaker, I'm here to share stats, facts and insights. Transcripts provided by Transcription Outsourcing, LLC. Hi, I'm Sarah Schultz and welcome back to your local real estate expert, the Schultz Realty Podcast. Today, we're tackling one of the biggest questions sellers face. Should you sell your property via auction or private sale? While both methods have their merits, in our local market, private treaty sales often come out on top. In this episode, I'll break down the pros and cons of each strategy, share some local insights and help you figure out which approach might work best for you for your property. If you're thinking about selling, this episode will give you some great advice to help you make an informed decision and achieve the best result for your home. Let's start with auctions. Auctions are about really getting an unconditional sale. The process itself is marketing for a few weeks with no price. Your property is advertised with a set date for the auction and people view the property. But really, they don't have a great idea on price other than comparable properties that you're allowed to give out. On the day, interested buyers bid against each other and if the highest bid meets your reserve price, the sale is finalized on the spot. The issue for me for Windaroo, Barscrub and Mt Warren Park is that auctions are not as popular in Queensland like Sydney and Melbourne. And I found that auctions here don't create the usual competition and urgency because for us, it's only attracting around 5 percent of the market, which will leave you not having as much competition. And in my opinion, a lower price or not selling under auction at all. There's also no guarantee. A sale and auction day is going to happen. Like if the bidding doesn't meet your reserve price, you might be left empty handed. They can also be stressful for both sellers and buyers and not every property is suited to this approach. In fact, I would say only a small few Would suit an auction here, and that would be one you really couldn't put a price on or was potentially all about a developer or investor. Auctions can work well in high demand markets or for unique, highly desirable properties, but they're not always the best fit for every seller or property, especially in this area. Now let's talk about private sales or private treaty sales as they're often called. With this method your property is advertised as an offers over a price, a set price or a price range. Buyers make offers privately and you negotiate to reach a mutual agreeable sale price. The big advantage here is that you have the whole market competing and we have found that we are getting multiple offers 90 percent of the time and in turn an even better result and it's including the whole market and exceeding seller's price expectations. We find the one with the best results is the offers only campaign. Here in Basgrave, Mount Warren Park and Winderoo, the data speaks for itself. Private treaty sales dominate the market. Auction clearance rates are low in our area, which means auctions don't always deliver the results sellers are hoping for. Private sales, on the other hand, align perfectly with the needs of our local buyers. They provide the competition needed to create multiple offers, but also allow buyers to know exactly a range or price range to get all their ducks in a row with pre approvals and finance in order to place an offer to purchase the property. In fact, the medium time for house sales in Bars Scrub, for example, is only 18 days when sold privately, just showing how effective this method actually is. In our community, private sales aren't just a fallback option. They're often the first and best choice for most sellers. So how do you decide which method is right for you? It really depends on your property and your goals. Like I said, auctions, all you have to do is look up the results for the area and you will see there is not many and the ones that have sold, they have not exceeded price expectations and have in fact sold for lower than expected prices. And I think it's due to the fact that only a small amount of the market have cash and want to buy that way here in these areas. Our area is full of long term owners who have grown up here and young families who are moving in here to do the same and they're just not usually in a position to be buying under auction conditions. If your property is really unique or has, for example, DA for units or townhouses, then an auction might be the thing for you. But bear in mind, the private treaty offers over strategy will still work as well and will include the whole market, including pre approved buyers as well. It's also important to consider your timeline. I personally feel the offers over strategy encourages fast sales as well as exceeding price expectations as well. So to me, that's a win win situation and it's not so public. When you have multiple offers this way, it's very private and no other buyer can see each other's offers. So for that reason as well, it's more private and to me, I like that. Choosing the right strategy starts with understanding your property and your goals. That's where expert advice can make all of the difference. At the end of the day, the best selling strategy is the one that works for you, your property, and the market you are in. And if you are thinking about selling and wanna discuss your options, I would love to help head over to my website@www.schultzrealty.com au or book a free consultation. Let's work together to find the strategy that gets you the best results. And don't forget to subscribe to the podcast for more expert advice on buying, selling, and investing. Right here in Bar Scrub Mount Warren Park and Wind Roo. Real estate isn't just about selling houses. It's about building trust, creating opportunities and achieving the best possible outcomes. Thank you for tuning in with me, your local real estate expert, the Schultz Realty Podcast. I'm proud to serve Mount Warren Park, Bars Scrub and Windaroo as a knowledgeable, caring and reliable resource for all your real estate needs. Whether you're buying, selling or just exploring your options, I'm here to help you exceed expectations and make that decision. If you enjoyed this episode, don't forget to subscribe so you never miss an update and share it with another local who might find it helpful. Until next time, take care and remember, the perfect property is just around the corner.