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Methods of Selling Property

Property Sale Methods

Sell Your Home by Auction

With an intensive advertising campaign, auctioning your home is a method of selling geared towards achieving the true marketing value and meeting a relatively short time frame. Through public negotiations, auctions are designed to create competition and urgency amongst buyers which in turn hopes to generate a successful result for the sellers.

Another attractive feature of auctions is that you have different scenarios that can affect a sale at three various stages throughout the auction process.

1. Stage One of the Auction Process

Prior to the auction date, your property will undergo an extensive marketing campaign to ensure high exposure and attract high levels of enquiry in the lead up to the auction. Even though your property is listed as an auction, it is still possible for it to sell prior to auction.

2. Stage Two of the Auction Process

The auction itself is the best time to stimulate competition amongst buyers. Even though it is the shortest part of the auction process the goal is to secure a sale during this process, because genuine bidders who tend to think in a price ranges as opposed to a specific value, they are most likely to raise their bid to the upper limit of their price range, and even beyond, therefore achieving the highest possible price.

3. Stage Three of the Auction Process

Even if your property doesn't sell under the hammer, it is entirely possible that you could still sell post auction to a buyer who wasn't able to purchase under auction conditions.

Benefits of Selling your Property by Auction:

  • High profile marketing brings attention to your property.
  • A wider range of buyers are attracted because auctions aren't listed with a price.
  • The focus is on a finite selling date, creating urgency.
  • Your property reaches more potential buyers.
  • Market feedback is more readily offered to the selling agent.
  • Competition amongst buyers provides opportunity to achieve a premium price.
  • You have the safety net of setting a reserve price ensuring it isn't sold at an inadequate price.
  • Settlement date is flexible.
  • No conditions on the contract means if sold at auction, there are no questions as to whether the sale will go through.

The Three P's of Auction Selling with Harcourts Solutions

  • People: The Harcourts Solutions Team have the confidence and expertise when it comes to selling a property under auction. Our Auction Managers, who will guide you through the auction process are acknowledged as being some of Australasia’s finest. They're supported by a our internal marketing department and understand what it takes to successfully sell at auction.
  • Profile: A strong and emphatic marketing campaign will mean your property features in a range of media types. Harcourts are the largest real estate company in Australasia, meaning we are one of the most recognisable brands.
  • Performance: Harcourts Solutions has a proven track record in auction sales including on-site auctions at the property and in our auction rooms. Equipped with the latest audio visual equipment, we're able to showcase your property professionally.

Setting Your Reserve Price

The absolute minimum price you would sell your property for is called the "reserve price". Your auctioneer will know your reserve price and cannot sell for less than that figure. Feedback during the pre-auction marketing campaign will help you base your reserve price on the opinions of people who are genuinely interested in buying your property.

Bidding at an Auction

Once the auctioneer has invited offers from the registered bidders, he or she will then nominate the increments by which the bidding on the property may be raised.

A 10% deposit of the contract price will be requested and the successful bidder will then be requested to sign the contract.

Selling before Auction Day

If there is an interested buyer who would like to submit an offer before the auction day, they must complete an REIQ Sale and Purchase Agreement which is then presented to you. If you're satisfied with the contract offer, then the auction is brought forward and other interested buyers are given the opportunity to place a bid on the property as well. If another buyer puts in a higher bid the property will sell at the higher price, as it would under normal auction conditions.

Auction Bidders who Need Finance

Auction bidders who need finance should organise it through their bank or mortgage broker prior to the auction day as bidders must be in a position to bid on an unconditional basis. Pre-approved finance also means that the bidder knows the upper limit they can afford to bid to.

Auction Bidders with a Property to Sell

Auction bidders who still have a property sell have two options:

  1. If in a comfortable financial position, bridging finance can be arranged to cover potential delays in their property settling.
  2. To allow a longer period of time for their property to sell, they may request an extended period for settlement of the auction property they have bought.

Auction Property Didn't Sell Under the Hammer

If bidding does not reach the reserve price, the property will be passed in to the highest bidder on the day who will be offered the first opportunity to purchase the property at the seller's reserve price immediately following the auction. If the buyer does not complete the sale immediately following the auction, it will then be offered to all other interested buyers.

*IMPORTANT INFORMATION: Before signing any agreements, both the buyer and seller should seek legal advice.

Sell Your Home by Negotiation

To sell your home 'by negotiation', your Harcourts Solutions agent will place your property on the market with an asking price or "by negotiation" meaning there is advertised asking price. Potential buyers will be asked to make an offer on the property so that negotiations may begin.

Your Harcourts Solution agent promises to receive all offers in writing on an REIQ Sale & Purchase Agreement and will request a 10% deposit which will be deposited into the office's trust account. Generally the deposit is requested at the time of the first offer to determine that the offer is serious.

The written offer may be conditional (requiring either the buyer or seller to meet certain conditions within a set time period) or unconditional. Once drawn up, the offer is presented to you for consideration where you can accept it by signing it, or negotiate by returning a counter offer.

Negotiation may mean going back and forth between the buyer and seller a number of times until both parties agree on the price and terms of the contract. Once agreed to, the Sale & Purchase Agreement is dated and forwarded to the solicitor or conveyancer of each party.

Harcourts Solutions will also provide copies of the completed contract to both the buyer and seller to ensure they have the appropriate documentation including the unconditional date, settlement date, condition dates and chattels that will be kept at the property.

Generally the buyer will take possession of the property on the settlement date. The settlement process is conducted by the solicitors/conveyancers which will involve the payment and receipt of the funds, the exchange of the Certificate of Title, a Transfer Document, and the release of any previously paid monies relating to the property transaction. The keys are then handed to the selling agency or the buyer's solicitor at settlement, and may be picked up by the buyer any time following the settlement completion.

*IMPORTANT INFORMATION: Before signing any agreements, both the buyer and seller should seek legal advice.

Sell Your Home by Tender

Selling your home by tender will entail an advertising campaign that should capture the maximum attention of potential buyers within a set time frame. Used to determine the true market value of a property at a given time, the tender process is private and confidential for buyers and sellers.

Benefits of Selling your Property by Tender:
  • The result of your sale is private and confidential.
  • Buyer competition encourages potential for premium price offers.
  • Buyers must act with urgency due to the finite selling time frame available.
  • Market feedback is provided weekly to help establish the best selling price range for your property.
  • The seller has more control over certain conditions e.g. settlement date.
  • High profile marketing gives your property more prominence in the market place.
  • Your property isn't limited by an asking price.
  • Open homes are planned in advance giving better access to potential buyers.

Conditional or Unconditional Tender Offers

Whilst a tender offer may be conditional, buyers are advised to arrange pre-approved finance as an unconditional, cash tender is always more attractive to the seller.

Tenderers with a Property to Sell

Tenderers who still have a property sell have three options:

  1. Their tender may be conditional on the sale of their existing property.
  2. If in a comfortable financial position, bridging finance can be arranged to cover potential delays in their property settling.
  3. To allow a longer period of time for their property to sell, they may request an extended period for settlement of the auction property they have bought.

*IMPORTANT INFORMATION: Before signing any agreements, both the buyer and seller should seek legal advice.

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