Methods of Sale

Expression of Interest/Set Sale Date/Deadline Sale

  • This method of sale requires parties to register their interest in the property within a certain period of time
  • There is no price set so price is not an objection
  • Vendor may choose who they negotiate with
  • Invites conditional and unconditional offers
  • Most commonly used where there are multiple possibilities for the sale or lease of the property

Auction

  • The auction method of sale is a highly effective way of creating buyer competition to ensure that the best possible price is achieved
  • The auction process places a time frame (usually over a 3-4 week period) on the sale. This in turn instils urgency into the minds of the prospective  purchasers and allows the vendor to determine the terms and conditions.
  • When a property is sold at auction, the sale is unconditional, a 10% deposit is paid and settlement date is pre-determined
  • Auction is the only way of creating open transparent competition between buyers to drive the price upwards

Tender or Deadline Treaty

  • A Tender allows the vendor to deal with the preferred party
  • It sets a specific timeframe (usually over an 4-5 week period) which allows purchasers time to carry out their due diligence) and then make a formal offer
  • It provides the flexibility for the vendor to countersign the preferred offer
  • It also encourages tenderers to complete due diligence and have finance in place, reducing the time delay between acceptance and settlement
  • The tender process requires purchasers to submit on the vendor's pre-determined terms and conditions

Private Treaty

  • An asking price is placed on the property
  • Purchasers can make conditional offers on the property at any time during the marketing campaign
  • Encourages both conditional and unconditional offers
  • Benefit to purchasers as they are aware of the vendors expectations
  • No time pressure on vendors or purchasers