When selling a property by Private Treaty, the seller agrees to set a price for the market place at the commencement of the sales campaign.
Many sellers have a tendency to initially set a price higher that what the market will accept, based on the theory that buyers will negotiate the price down when trying to purchase the property.
This method of setting the price higher than what market will accept is in fact, quite counter productive, as buyers are extremely consumer educated in today’s market.
Normally they will have done extensive research and accessed information regarding surrounding properties, sales in the area and the general property market at the time of purchasing.
A Real Estate Agent has also the necessary and vital information regarding sales of similar properties and therefore it is wise to listen to your Agent when deciding on the price of the property.
Sales by Private Treaty also allow the seller more time to consider offers, and more control over the sale.
Points of interest to the seller are the deposit, how much and when would it be paid, how quick or long they want to have the settlement, depending on their personal agenda with family and moving, and what final offer they are prepared to accept.
With Private Treaty sales in Victoria, the seller and the buyer have three business days “cooling off” period, and in NSW, they have five days “cooling off” period.
So even if the seller and buyer have agreed to Offer and Acceptance on the property, the sale is still subject to conditions.
Sales Contracts are usually subject to several conditions, such as for example, finance approval, pest and building inspections and the “cooling off” period.
However, people often do prefer selling their home by Private Treaty as it is often viewed as less stressful than an Auction process.
The choice of how to sell your property, by Private Treaty or by Auction, should be a subject for much discussion with your Agent in order to get the best advice.