One of the biggest questions when it comes to selling your home is Auction or Private Treaty? Nick Wise from McGrath breaks down the pros and cons of the two.
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Here’s the transcript of the video:
Let's look at a private treaty or an auction is there are preferred I guess method that you like, that you like to advise your vendors on? Look, i'm very pro auction, whether the market is flying or it's contracting, I think auction it drives competition, it creates urgency for buyers and it also creates a deadline for people to work towards. To give you an example - I recently sold a free-standing house and the guide price for the house was $2.4million, initially got an offer from a buyer at $2.3 million in the first week, come the auction day we had eight other registered bidders there, that buyer ended up paying a premium of $2.8 million for the property. Now, I don't think we ever would have got to $2.8million, should have been, a private treaty or just a for sale campaign, that really sort of drove the competition through the property. We had over a 120 buyers through it and I think it's you know, that’s the right process to go through, and that you know, a lot of people are saying this is a contracting market and a changing market, which we've seen a lot of signs of that but I think that auction campaign and that process works the best in every market purely because you know it drives competition and creates urgency creates a fear of missing out for buyers