Return to site

Why Auction? Why Tender?

Real Estate Planning with Anna Manning

· Sellers Tips

Why Auction?

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.

Why Tender?

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.
All Posts
×

Almost done…

We just sent you an email. Please click the link in the email to confirm your subscription!

OK