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.
Like our videos? Don’t forget to subscribe to our Proptech Carpool series here.
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
