Auctions get a lot of the media attention, however they can be stressful and too fast paced for some sellers and buyers alike. If you don’t like the idea of the heat that comes with going under the hammer, a private treaty (or private sale) might be a better option for you.
This guide will give you insight into how a private campaign works, the benefits and whether it is the right fit for your property.
What is a private treaty campaign?
This approach to selling your property is less intimidating or overwhelming for both the vendors and buyers. A private treaty offers greater flexibility in terms of settlement periods and appeals to buyers purchasing subject to finance and vendors who do not require a quick sale or who are selling in a market that is less buoyant.
How does a private treaty work?
In a private treaty campaign, the seller (guided by their agent) sets the price they would like to get for their property. This can be disclosed to the public through marketing or withheld if the agent recommends a preview guide. A preview guide involves having a behind-the-scenes price guide that will not be on display for public view but will be used by the agent to negotiate a premium price for your sale.
Once the price has been set, the agents will welcome potential buyers through the property at open homes and private inspections.
The agent and seller will take offers on the property and negotiate with buyers until both you and the buyer can agree on a price. Once contracts are exchanged and the buyer pays a deposit, the five day cooling-off period begins. This gives the buyer time to complete his/her legal obligations, building inspections and secure finance approval ahead of exchange.
What are the benefits of a private treaty campaign for my property?
• The private manner in which this campaign is carried out allows opportunity for private negotiation on the price of the home with a potential buyer, the agent and yourself, as the vendor.
• Keeping the price guide from the public during a three-week preview campaign allows the agent to get a feel for the market and how much buyers are willing to pay. We are then better able to negotiate a great price for your property.
• After three weeks and in the instance that you haven’t found the right match, the agent can go to market with an informed price.
• Unlike an auction which hands ultimate control to the market for the sale of your home, a private treaty campaign gives you greater control over your offers and more time to consider whether you wish to accept, decline or negotiate.
• The less frantic pace of the private treaty campaign is ideal for people who struggle with the fast pace of an auction.