Benefits of auction:
- Attracts highly motivated and competitive Buyers.
- Provides an opportunity for you to receive a maximum sale price as it does not set a cap price.
- A sale on the day is a cash sale that is completely unconditional and therefore allows you to control the terms of the sale.
- Eliminate perceived negatives and objections to an asking price.
- Established sale date creates urgency.
- Allows you to sell prior to auction.
Considerations with auction:
- Conditional Buyers can feel excluded.
- No indicative price may deter some Buyers.
Benefits of tender:
- All buyers are eligible to purchase, whether conditional or unconditional by making an offer.
- Creates urgency for buyers with closing dates.
- Time pressure on you as an owner is reduced.
- Privacy regarding what offers were received.
- You may negotiate with Buyers after the tender has closed.
- Buyers can’t attack the price so there is a good opportunity to maximise your sale price.
Considerations with tender:
- Buyers are not placed in an open, competitive bidding situation.
- Conditions may be attached to the purchase.
- No indicative price may deter some buyers.