Arnold
CibbuanoSale by Private Treaty
August 10th 2006 00:48
Despite some of the advantages of selling your property by a public auction, for some a private sale arrangement is far less stressful. A private sale is also referred to as a private treaty sale. A private sale involves the seller setting a fixed price for the sale of their property. The property is advertised on the property market at that specific price and buyers interesting in the property can either offer a lower price or the expected price for the property. The seller can bargain with the buyers offer if it does not meet the expected advertised selling price.
There are several advantages with selling your property by private sale.
1) A private sale can be cheaper. This depends on how long the property sits on the market, as ongoing advertising comes at a price. However, in general a private sale will result in cheaper associated selling costs than a public auction. Auctioneer’s fees and marketing fees associated with auctions are an expensive venture which can be negated by selling with a private treaty.
2) If the idea of an auction is intimidating a private treaty provides a more stable method of selling or buying a property. The public competition for the property is removed. For buyers and sellers this means that you’re more likely to make well thought through rational decisions. Rather than exceeding budgets or getting pressured into accepting a lower offer.
3) There is no distinct final day for the sale of the property. It is costly to keep a property on the market for extended periods of time. However, there is some flexibility in the private treaty arrangement. Short term market booms may help you generate more interest. Unforeseeable circumstances can affect the outcome of an auction which may effect the result on auction day. Having an open ended date of sale can be less stressful than the build up to a final auction day.
4) The seller has more scope for negotiation with a private sale. It enables the seller to negotiate on their own set terms and conditions (such as long settlement), as well as the price. This is not an option for public auction sales.
Buyers generally prefer the fixed price method of purchasing property rather than competing in a bidding market. The seller of the property must commit to a price when the property goes onto the market. It is important to base the asking price on a figure which represents the value of your property as there is no scope for increasing the value based on public opinion as is the case with a public auction.
There are several advantages with selling your property by private sale.
1) A private sale can be cheaper. This depends on how long the property sits on the market, as ongoing advertising comes at a price. However, in general a private sale will result in cheaper associated selling costs than a public auction. Auctioneer’s fees and marketing fees associated with auctions are an expensive venture which can be negated by selling with a private treaty.
2) If the idea of an auction is intimidating a private treaty provides a more stable method of selling or buying a property. The public competition for the property is removed. For buyers and sellers this means that you’re more likely to make well thought through rational decisions. Rather than exceeding budgets or getting pressured into accepting a lower offer.
3) There is no distinct final day for the sale of the property. It is costly to keep a property on the market for extended periods of time. However, there is some flexibility in the private treaty arrangement. Short term market booms may help you generate more interest. Unforeseeable circumstances can affect the outcome of an auction which may effect the result on auction day. Having an open ended date of sale can be less stressful than the build up to a final auction day.
4) The seller has more scope for negotiation with a private sale. It enables the seller to negotiate on their own set terms and conditions (such as long settlement), as well as the price. This is not an option for public auction sales.
Buyers generally prefer the fixed price method of purchasing property rather than competing in a bidding market. The seller of the property must commit to a price when the property goes onto the market. It is important to base the asking price on a figure which represents the value of your property as there is no scope for increasing the value based on public opinion as is the case with a public auction.
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