Selling Your House? Determine Which Method to Use

Listing your property for sale on the market is an exciting time. The thought of selling your old home and starting your life in a new one can bring a rush of happy thoughts to mind.

And with the spring selling season coming up, now is looking like a great time to get your house listed and on the market - ready for the awaiting buyers!

If you're thinking of listing your home for sale in the future, you'll need to decide on the type of selling method you want to use.

There are a few main selling methods in Australia and all have their pros and cons. Your decision ultimately depends on your preference, while taking market factors into consideration.

Here are two of the most popular selling methods to help you decide which one is right for you.

Private treaty

Private treaties are the most common selling method in the country. The process itself is quite simple. You and your real estate agent discuss the price of the property and come to a decision together for what you think is best.

Prospective buyers can then make offers on your property, with your real estate agent acting as the intermediary party in the negotiation process.

Once you and the buyer have come to an agreement on price, the real estate agent can then draw up a contract of sale for both parties to sign.

This selling method has a great deal of flexibility for negotiation, meaning that you have the power to accept or decline offers at your discretion.

You also have the time to make negotiations - opposed to auctions where there is a fixed date that you are working towards.

However, this could also leave your house on the market for a long time as there is no final date.

Auction

Auctions are another popular choice for homeowners in Australia, as they can be a great way to secure a high sale price in a heated market. Throughout 2013, auction results have been very encouraging in many areas across the country, demonstrating their popularity.

With this selling method you still have the ability to accept offers (pre-auction offers) before the auction actually occurs.

One of the benefits of auctions is that your real estate agent will help you to create a campaign for your property leading up to the auction day. This will generate interest and give you a final sale date to work towards.

This means that selling by auction is usually a lot faster than by private treaty.

If market conditions are in your favour and there is a high rate of buyer interest then you may achieve quite a generous sale price due to competitive bidding.

Auction sales are also unconditional, which means that once it has gone under the hammer, the sale is final.