When it comes to buying a property in Australia, there are two main methods of sale: auctions and private sales. While some buyers may be hesitant to participate in auctions due to fears around emotional stress, others may be daunted by the complex process of a private sale. Ultimately, it’s important to understand the key differences between these methods so that you can better understand and weigh up your options.
Today I run you through the benefits and drawbacks of auctions and private sales, and discuss which method may be better suited for different situations.
Auctions can be scary, and I’ve had my fair share of nerve-wracking moments when bidding. However, while it feels high-pressure and the contract can’t be subject to conditions, there are benefits to taking the auction route. I talk about specific rules that auctions must follow in Australia, and how it creates a transparency that gives buyers a level of confidence. I also discuss how auctions are driven by the highest price, rather than which buyer has better terms or requests.
Private sales encompass any method of sale that is not an auction, such as expressions of interest, sale by set date or off-market properties. While private sales offer more flexibility in terms of conditions and due diligence, this method has its own set of disadvantages. This includes not having as many standardised rules as auctions, and each agent often having a different process for handling offers. This can create a lack of transparency that makes gauging the competition and making informed decisions difficult.
While I personally favour one method over the other, both have their benefits and drawbacks. Thoroughly understanding the nuances of each is what can help you navigate the buying process with more confidence and peace of mind.
At the end of the day, don’t let fear influence your decisions or have you shy away from amazing opportunities. Once you’re informed on how the different methods work and know what to expect, you can move through the property buying journey with confidence and a trust in your own instincts.
LINKS:
Check out my FREE checklist 100 Things To Look Out For At Property Inspections here
Connect with Amy:
Website: www.thefirsthomeguidebook.com.au
Instagram: @the.first.home.guidebook
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