A good agent can take the hard work out of selling your home.Once you have decided that you’re ready to put your property on the market, you’ll need to choose the right selling process to suit your needs. Homeowners can choose to sell via auctions, or in a private sale. There are pros and cons to selling property with a private sale, which are worth taking a closer look at before making any decisions.
It’s also vital to consult with a professional agent for advice during this important process. Since 2007, LocalAgentFinder has been connecting property owners with local real estate agents using a free, no-obligation online dashboard. To get started, register your property here!
Fixed Price Private Sale
One of the most traditional methods of selling real estate is with a fixed price private sale. In this type of transaction, the vendor will make their sale price expectations clear. The price is usually determined with the help of advice from an estate agent. There are many ways to help increase the chances of a successful sale. For this to be a successful transaction, the seller must ensure that the price is the most accurate reflection of the current market value, by comparing the property to similar types of homes in the area. The property can then be advertised using the seller’s choice of marketing plan, and the seller can start accepting offers.
Once a house has been listed, prospective buyers can make offers without competition from other purchasers. It’s then up to the seller to choose whether or not to accept each offer or enter into a negotiation process. The real estate agent assists with the negotiation process should this occur, with the final price agreed upon in a written contract.
Advantages of a Fixed Price Private Sale
There are numerous advantages associated with selling property using this private sale method.
- Once an asking price has been advertised in marketing materials, this takes away the potential for further price estimation. This helps attract homebuyers who are looking for a property in a specific price bracket.
- Sellers have the option to either set a specific deadline or leave the sale date open. With no deadline, buyers feel less pressure to act immediately. This can be attractive to purchasers.
- Advertising the sale price creates a more open selling process. Buyers who may not appreciate the more competitive auction sales process may be encouraged to submit an offer.
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Disadvantages of a Fixed Price Private Sale
- Without a specific deadline for the final sale, the selling process may be drawn out as buyers wait to see if something better might come along. In an auction, by contrast, buyers are forced to make a quick decision.
- It can be difficult to choose the right sale price. If the price is set too high, there is a danger that the property could sit on the market for a lengthy time period. A low listed sale price may result in the seller losing money when the property could have potentially sold for more.
Sale by Deadline Private Sale
Another type of private sale to consider is the option of selling a home with a set deadline. In the case of a deadline private sale, buyers must compete against one another to purchase the property in question within a specific time frame. This is done without the formalities of the tender process, with all offers turned in confidentially in sealed envelopes before the deadline expires.
Advantages of a Deadline Private Sale
As with the fixed price private sale, there are also numerous advantages associated with a deadline private sale.
- A deadline private sale may be advantageous to the vendor, because it creates a greater sense of urgency. Buyers must compete with one another as they would during the tender process, which can drive up the final sales price in the spirit of competition.
- With a deadline sale, potential buyers are not able to compare the property with similar homes on the market, because they don’t know what the seller’s price expectations are. This means that they may end up paying a higher price to the seller’s advantage.
- The seller has the ability to control how much advertising is necessary, potentially lowering marketing costs.
- Although the vendor may not necessarily accept the highest offer, having this number in mind helps create a certain level of expectation for any further negotiations with the buyer. This can facilitate negotiation after the deadline time has passed.
- Buyers can make offers with conditional clauses attached. This could include offers contingent upon financial approval, or upon the sale of a secondary property. With the ability to attach these stipulations, the property for sale will be available to a broader range of potential buyers. The seller can then consider all of these different conditions to determine which will best suit their needs.
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