Auction, negotiation or deadline – weighing up your options

When selling a property, one of the first decisions you'll need to make is how to take it to market.

There is no single method that suits every property or seller. Your choice may depend on factors such as local buyer demand, the type of property, your timeframe and whether flexibility or certainty is more important to you.

Selling by auction

At an auction, buyers bid publicly against one another and the property is sold to the highest bidder once the seller's reserve price has been reached.

Auctions can create competition between interested buyers and give the campaign a clear timeframe. Another advantage for sellers is that a successful auction sale is unconditional.

However, buyers generally need to complete their due diligence and organise their finance before bidding. That may reduce the pool of potential purchasers, while there is also no guarantee bidding will reach the reserve price.

Selling by negotiation

With a sale by negotiation, there is no deadline for offers. Buyers make offers based on what they believe the property is worth and the seller can accept, reject or negotiate an offer.

This approach offers flexibility around both price and conditions. Buyers can make conditional offers, which may make the property accessible to people who still need to confirm finance, obtain a building report or sell another property.

The trade-off is that without a set deadline, there may be less urgency for interested buyers to act.

Selling by deadline

A deadline sale involves marketing the property for a set period and asking buyers to submit their offers by a specified date. Depending on the terms of the campaign, the seller may also be able to accept an attractive offer before the deadline.

This method can create urgency while still allowing buyers to make conditional offers. Sellers may also receive several offers to compare at once. However, there is no guarantee that any offer will meet the seller's expectations.

Ultimately, sellers should discuss the most appropriate method with their real estate agent, taking into account the property, local market and their priorities.

Selling one property and buying another can involve some financial juggling. If you’re considering your next move, we’d be happy to help you work through the finance side before you commit.