Which method of selling your home is right for you?

By Richard Denholm*

Ninety-two per cent of Australians who sold in the 2016 March quarter made a gain on their house, according to CoreLogic RP Data.

So, if you are considering selling, it is imperative that you know exactly what you are doing to ensure you are among the 92 per cent and not the unfortunate eight per cent.

Knowing the methods of sale and identifying which is suitable for you is the first step to selling for more, reducing the size of your home loan and giving you valuable wiggle room with your finances.

Putting your home at the mercy of the auctioneer’s gavel can net you great results.

Auction:

This is the form of sale where your home is put up for public auction and the highest bidder enters into a contract with you to buy your property.

Auction is a great method if you want to sell quickly, as it creates a sense of urgency.

This makes it likely your home will be bought – potentially for more than you expected as buyers compete to make the best offer.

CoreLogic Data confirmed that the nationwide clearance rate for auctions has generally sat above 60 per cent during the past three-years.

Despite the many benefits, auctions may not be the best option when there is clear and accurate public information on sales of similar properties in the area – a particularly common occurrence with apartments or units.

In these situations, buyers will likely limit their highest bid to the historic sale prices of surrounding properties, which means a private sale treaty of tender might be a smarter option.

Private sale or tender:

The process of tendering your property involves advertising it for sale before receiving offers privately – usually via sealed envelope, either accepting the most suitable one or rejecting them all.

Private sale involves connecting with one buyer and entering into further negotiations with them directly to try and achieve the best deal possible.

These are excellent options for homeowners who have plenty of time to sell and want more control over the process.

There is also a chance that someone will make an uncommonly high offer due to the fact that buyers are not made aware of the value of other offers made on the property.

For more information, contact Richard Denholm on 6237 0444, email rdenholm@smartline.com.au or visit smartline.com.au/rdenholm.

*Richard Denholm is a home loan specialist at Smartline Personal Mortgage Advisers Rosny Park.