Property prices are on the rise!

CoreLogic’s latest national home value index recorded a 2.8% rise in March, the fastest rate of appreciation since October 1988 (3.2%). When we look a little closer, and examine the regional markets, here in NSW we had the highest gains; values were up 2.8% over the month, 6.6% over the last three months, and 13.6% in the past 12 months.

So, if you’re thinking of selling, now is a good time.

But which is the best way to sell your property? The two most common ways of selling a property are by private treaty and auction.

Here are the pros and cons of selling by both methods:

Private treaty

Sometimes referred to as a private sale, this is when you set the price you’d like your property to sell for, and then you negotiate with prospective buyers, generally via a real estate agent, to achieve the best sale price.

Pros

• You have control over the sale and can hold out for higher offers.
• You have more time to consider offers from potential buyers.
• There is flexibility for negotiation, for example on completion dates and what is and isn’t included in the sale.
• There is a cooling off period if you change your mind.
• You don’t have the marketing and promotional expenses of an auction campaign, and auctioneer costs.
• The process is often more appealing to many buyers.

Cons

• Compared to an auction campaign, your property may take longer to sell.
• There may be more inconvenience by having to make your home available for frequent viewings and inspections.
• There is a danger of mis-pricing the property; if you list below the property’s market value, you will lose money, and if you price it above the market value, it may take longer to sell, and you may end up reducing the price anyway. This is where using an experienced agent, who understands the local market is an advantage, and you reduce the risk of mis-pricing.
• The cooling off period is also a con, as the buyer may pull out, so you will need to start the process again.

Auction

This is when a date is set for prospective buyers to come and bid on your property. You set the reserve price, and when the bid matches or exceeds this, your property is sold to the highest bidder. There are more legalities involved with selling at auction, so it is imperative you use a qualified and experienced auctioneer.

Pros

• There are three opportunities to sell their property – before the auction, on the day of auction, or in the event the property is passed in, directly after auction.
• You set a reserve price and a settlement date to suit you.
• With just one date to work towards, you don’t get the hassle of open inspections and requests for private viewings.
• It’s a quick method of sale and settlement – buyers work withing a set time frame.
• Auctions can get exciting, and competitive bidding can drive the price upwards.

Cons

• Generally, auctions have a more expensive marketing campaign than private treaties.
• Even if the property does not sell, the vendor is still responsible for paying the marketing costs.
• Legally you have to sell your property to the highest bidder – even if you’re offered a higher price five minutes later.
• The auction process does put off some buyers.

Both methods of sale work very well; a good agent knows what the market is currently dictating and can advise which method of sale will work best for your property.

We do more than sell and manage property; we also love sharing our knowledge with you so you can make informed decisions. We believe we go above and beyond expectations which is why we are one of Newcastle’s longest established real estate companies. What’s more, our Director, Craig Andriessen, is a licensed auctioneer, so we can manage any methods of sale inhouse.

Give us a call on 02 4954 8833 or pop into our Cardiff office for a no-obligation chat or to arrange a free appraisal. Alternatively, send us an email to: mail@apnewcastle.com.au – we’d love to hear from you.

And don’t forget to check out our Facebook page for handy tips on selling your property or what to look for when buying a property.