When selling a home it is important to choose the right path to get the most out of your earning potential.
According to the director of Marron Real Estate and licensee Reta Maron, the tested methods of selling housing fall into two categories.
“The first is private contract sales, which are the most common in Western Australia, and the second is from public auctions,” he said.
While auctioning is an easy way to sell a home, privately selling has a few tentacles that sellers may want to investigate.
“There are different ways to offer real estate under a private contract,” Mr Marron said. “Some examples include a fixed price, a price benchmark, a set sales date and an expression of interest.”
Realestate 88 East Perth CEO Joel Cooper said each choice has pros and cons that sellers need to weigh.
“It is important to choose the best method for your property, market conditions and your personal circumstances to ensure that the desired result is achieved,” he said, adding that private sale was more transparent about the seller’s price expectations and gave buyers time . inspect the house and make an offer.
“It can be both a benefit and an obstacle to future sales.
“If the price is competitive, several buyers will usually check and make offers, thus maximizing the potential selling price.
“However, if interest is low, the property may remain in the market due to lack of interest, leading to a recall or unsold list, or to subsequent adjustments to the specified price until the market sees a price at the new price.”
Mr Cooper said that for those who want to sell the house on time and don’t want to limit potential profits, an auction can be a way.
“Ideally, multiple parties will make multiple bids, resulting in the best market price being accepted by the seller as the highest,” he said.
Mr Marron said WA favored selling through private contracts, while auctions tended to be more common interstate.
“The most common way to sell is a private contract with a tendency to advertise the price as an offer,” he said.
In addition to these traditional ways of selling housing, Mr Marron said he has seen online shopping become more common.
“Now there are different platforms, mostly with the auction method of selling,” he said. “They have not yet become the dominant method of selling, but they will certainly become the norm in the future.”
Mr Marron said sellers should conduct their own research on which method is best for their home and situation.
“Get opinions from different experts, write down the pros and cons of each method of sale and do not feel that you need to sell your home one way, just to keep up with Jones,” he said.