Auction vs. Private Sale

AuctionA common question asked by sellers is whether it is better to sell by auction or by private sale.

Every real estate agent is likely to give you a different answer, but in truth both options have their pros and cons and the most suitable type of sale for your property will depend on a variety of factors.

Why go for a private sale?

  • A private sale can be cheaper as you won’t need to pay for a specialist auctioneer or possible extra marketing costs
  • You can take your time with a private sale, which is useful if you want to wait and see what offers you will get or if you want special sale terms such as an extended settlement period.
  • This type of sale is generally a lot less intimidating for buyers and sellers as both have more time to consider offers.
  • If you’re a particularly private person then you may prefer to have a sale away from the public eye.

Why go for an auction?

  • In general auctions are quicker because a set date is given and buyers feel a sense of urgency to make their decision right away.
  • You may attract a higher price with an auction as competition amongst buyers can push the price well above the expectation of the seller.
  • Auctions often get the attention of casual buyers who may turn up unannounced on the day and decide to join in on the bidding.
  • There are set terms for sale at an auction which is good for sellers who want an unconditional sale (no cooling off period).

Overall it is important to do what suits your property, so ask your Professionals real estate agent what they recommend and they will be able to offer you the best advice based on your individual situation.