Ways you can sell your home

You may have bought your current home by making an offer and negotiating from there; or at auction, by submitting a tender or by set date of sale.

Now that you’re on the other side and looking to sell your home, what do you need to consider from a seller's point of view?

The pros and cons of each way to sell

Selling byAdvantagesDisadvantages
Offer and negotiation
Can be done through a sole or general agency, or privately
  • there’s less pressure on the seller
  • you can take your time to consider offers and wait for the right price
  • you can negotiate until you get a deal that suits you
  • buyers have a price range to guide them
  • many buyers prefer this method because they don't have to compete in a high pressure environment
  • you need to be sure of your asking price
  • buyers may try to negotiate the price down
  • offers may have conditions included
Auction
Can only be done through a sole agency
  • you don't have to set an asking price (but you do set a reserve, which is private)
  • you have a set day for the auction
  • a keen buyer may pay a top price to buy the property before it goes to auction
  • competition between buyers on auction day may push the price up
  • a sale at the auction is unconditional
  • if the home doesn't sell you can negotiate with the bidder/s
  • it's a very public process
  • only cash buyers can bid, which can mean fewer potential buyers
  • you may have advertising costs to pay even if you don't sell, on top of real estate fees
Tender, or set date of sale
Can only be done through a sole agency, or privately
  • you don't have to set an asking price
  • it's a private way to sell
  • buyers put in their best offers - there's an element of competition between buyers
  • offers are usually received by a set date
  • you don't have to accept the offers/sell
  • you can sell early if you want
  • you can negotiate with some or all those who put in offers
  • some potential buyers are put off by the 'closed' nature of tenders
  • you may have advertising costs to pay even if you don't sell

 

Private sale vs. selling through an agent

Selling byAdvantagesDisadvantages
Private sale
 
  • you won't need to pay a real estate agent's fees
  • you're in control of the whole process
  • there are companies that can help you manage your private sale (like providing you with an advertising toolkit). These elements usually cost less than using a real estate agent
  • you'll need to get your home valued and set an asking price or tender date yourself
  • doing it yourself doesn't mean it's ‘free' – there are still costs like your lawyer's fees and potentially advertising costs
  • you'll need to wear many hats to manage everything from advertising to being a salesperson, and be available for property viewings whenever needed
Real estate agent
Can be done through a sole or general agency. Fees vary between commissions, commissions and a base rate, or fixed fees.
  • your real estate agent/s will take care of organising advertising, promotion and open home days
  • the agent will deal with potential buyers' offers, and showing them the property
  • fees vary a lot between agencies, but could include a base fee of around $500, and a commission starting at 4% of the sale price