Johnson Property Group

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Why a subtle sale is better than an auction

Selling your property strategically by private treaty is better than under the hammer with fanfare and fireworks.

Many vendors find the excitement generated at auction hard to resist, but the reality is that it’s the agent that benefits the most from this type of sale.

Make no mistake, this market is far better suited to a private transaction. This strategy means that rather than sign up for a very public four-week campaign, your deal will likely be sorted over just one weekend. 

Recently Johnson Property Group took 140 interested parties through a house over a weekend. We only allocated two one-hour time slots over both days and inconvenience was minimal to both tenants and potential buyers.

The organised nature of the viewing meant there were no time-wasters, no nosey neighbours and no nonsense.

Here’s how we rolled. On the Sunday evening we consolidated the register of those who were serious about the property and called them all first thing Monday morning to let them know there would be multiple offers. 

We advised all parties that the offer they’d submit would be their first and best offer. It’s a rational and calm process that gives everyone the best opportunity under equal conditions. We then put all offers on the table in front of the owner and give them the pros and cons of each. After all, the highest price might be conditional so it’s not always straightforward. 

The vendor then accepts one offer or counters it, and rejects the other nine. This means we are only fairly dealing with one potential buyer at a time. Sometimes the strongest offer might not be enough so we’d go back to the purchaser and negotiate. But in this particular case, the offer was significantly over the reserve – 18 per cent – and the deal proceeded without any issues.

During these uncertain times of Coronavirus, a sale by private treaty also means things can proceed without fear of lockdown or changes to social distancing rules.

One other very major positive of this strategy is not having the stress of continual home opens.

In addition, we only engage with qualified buyers and the cost savings are enormous. No expensive marketing campaigns for an auction that really only ends up promoting the real estate agent anyway. Put simply, an agent will take five grand of you to put their own name up in lights. 

Privacy is often a big factor for vendors. Many clients don’t want others to know what they are selling or buying. It may be just a case of wanting to keep their financial position private or it could be for emotional reasons such as a divorce.

An auction will come with a set of strict terms and conditions, but a good agent will be able to negotiate a much better private deal with a higher price point and conditions to suit the seller. Private sale gives us the ability to tailor the outcome for you.

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