While we might not be looking at the wild times of late 2021, the market in Cairns is still performing and as owners look to make the most of their property amongst high demand, the question is often raised – HOW should I be selling my home?
Selling with a listed price (private treaty) remains the most popular choice in our market, preferred for its simplicity and transparency. A price is put to the property, be it fixed dollar, “offers over” or a tight range, and buyers are then able to assess and submit offers against that clear expectation. When buyers find themselves amongst keen competition that price might be their baseline, whereas in less fierce markets they might be better positioned to offer under the odds. Selling this way also allows for buyers to make offers on varying terms – with building and pest and finance conditions the most common to find their way into contracts.
Auction is the next method to occur to many sellers, with price removed from the equation (properties going to auction in QLD CANNOT have a listed price guide), a set timeframe for the sale and an unconditional contract at the end. This can be great when you are in a segment of the market where buyers are cashed up and you know you’ll have multiple offers – after all, buyers compete to outbid each other and pay the MOST for your home. The downside to this is that in a market with rising interest rates, its harder for buyers to get pre-approval, and often they might not have as much budget as they thought initially. A buyer without finance approval in advance cannot (or at least SHOULD NOT) bid, likely leading to a lesser result.
For those wanting a mix of both platforms, Expressions of Interest (EOI) can also make the cut. Similar to an auction, there is no price, and a set date for offers to be submitted. In contrast to auction though, offers are not disclosed to anyone else and can be on varying terms. This can provide an opportunity for an outlier (read: premium) buyer to pay far more than the next highest, or to allow for acceptance of a potentially lower offer on better terms.
Not every method suits every property (or seller) and ultimately, your chosen method of sale needs to feel comfortable – the last thing you want is to be second guessing your agent (or yourself). So when it comes to selling, ask the question, make a plan, and prepare for success.