Selling your house will always involve getting your property ready for sale – regardless of which method of sale you and your agent select. This includes staging your home, photographing it and then running advertisements through various media to present your property in the best way possible to buyers. There will also be several open houses for buyers to inspect your property.
With your real estate agents guidance – there are three options when it comes to the method of sale to choose from to sell your home. We explain each in more detail.
Private Treaty: Most property in South Australia is sold by Private Treaty. Meaning the property goes on the market and then offers are taken from purchasers and presented to the vendor.
Sales by private treaty allow greater flexibility for negotiation. As an example, a contract can be signed ‘subject to’ conditions. These can be a request for building inspection or approval for finance.
Once both the vendor and the purchaser have signed the contract and a Form 1 sign a contract has been served to the purchaser cooling off can begin. Cooling off lasts for two business days.
If you are selling by private treaty, you can vary the price of your property while it is on that market. Offers made will be presented to you by your real estate agent.
Expression of Interest: In this method of sale potential buyers are invited to submit an offer to buy your property by a specified date and time. Your property will be on the market for three to four weeks so that potential buyers can inspect your property, determine what they want to pay and finalise their finances. They will then present you with an Expression of Interest (EOI) in which they will state their offer price, conditions of sale such as financial conditions and dates of settlement.
Your agent will use comparable sales to determine the best price for your property. They will work with your expectations and will design a marketing campaign to sell your property for the best result.
Buyers will make you offers that you can accept, decline or negotiate through your real estate agent.
There is a cooling off period of two days in South Australia for the buyer to conduct building inspections or withdraw from the contract without default.
This type of sale gives you the advantage of receiving several offers which you can evaluate, and you can adjust the price during the selling period depending on the buyer feedback.
Auction: This is another method that is gaining popularity, but it is most effective in a competitive market where there is a lot of buyer interest. Your agent will be able to advise whether or not they think your property is suitable for auction.
An auction of your property is held at a particular place on a specific day and time – generally at the property itself. Buyers assemble to bid on your property while a licensed auctioneer will conduct the auction based on strict regulations governed by the state.
The very nature of an auction creates excitement and competition, often spurring buyers to bid higher than they might have otherwise, which gives you a higher chance of achieving a reasonable price on your property. When the bids reach your reserve price at the auction, the property will be sold to the highest bidder.
