Choosing to Sell: Auction or Private Sale?

Looking to sell your property? Every owner wants to get top dollar from a sale and one of the most debated factors in ensuring you get top dollar is the method you choose to sell with. If you are in talks and are planning on putting your home on the market, you’ve probably been debating whether to sell at auction or private sale.

Both methods have their benefits and, depending on the market and your local real estate climate, either one could net you the bigger offer. Read on for a few points to consider before you list your property.

Auctions create urgency

In any market, an auction creates a sense of urgency amongst buyers. If buyers are interested in the property then they will come and they will be forced to bring their best and square off against each other if they want to sign the papers at the end of the day.

Private sales make room for other potential buyers

As auction bids are often unconditional, this sort of sale technique is better suited for those who need to make special arrangements for financing or work out other conditions. Ultimately, this means that a private sale allows buyers who might not be able to bid at an auction to make an offer.

Auctions are competitive, private sales are less intimidating

Auction sales do have the distinct advantage of encouraging competition between buyers and pulling the best price possible out of them, but at the same time some buyers are put off by the idea bidding at auction and choose to stay away. Private sales are less intimidating, meaning the potential is there for a larger number of interested buyers to approach you with offers.

Private sales are better when you have less time constraints

Auctions demand that a property be sold on the day, which is great if you need the cash for another investment. If you don’t have time constraints, this selling method means your home can stay on the market for a lot longer, giving you more time to get the offer you want; although this does mean your home could stay on the market for months if no offers come along.

Both methods of sale have their advantages and, unfortunately, the answer isn’t always clear.

If you need to sell your property urgently to make an investment or achieve what you want to achieve financially, an auction might be the way to go. If you have the time and patience in a seller’s market to wait for the offer that you want to come along, a private sale could fetch the higher price.

Talk to your realtor about the current state of your local property market and check recent trends on sale prices at auction and through private sales in your area.