Which method of selling your home is right for you?
In the March Quarter of 2016, 92 per cent of Aussies who sold made a capital gain on their house, according to CoreLogic RP Data. So if you’re considering selling, it’s imperative that you know exactly what you’re doing to ensure you are amongst the 92 per cent, and not the unfortunate eight.
Knowing the methods of sale and identifying which one is suitable for you is the first step to selling for more, reducing the size of your home loan and giving you valuable wiggle room with your finances.
Auction
This is a form of sale where your home is put up for public auction and the highest bidder enters into a contract with you to buy your property.
Auction is a great method if you want to sell quickly, as it creates a sense of urgency. Making it likely your home will be bought – potentially for more than you expected as buyers compete to make the best offer. CoreLogic data confirms this as the nationwide clearance rate for auctions during the past three years have generally sat above 60 per cent.
Despite the many benefits, Auctions may not be the best option when there is clear and accurate public information on sales of similar properties in the area. Particularly common occurrence with apartments or units. In these situations buyers will likely limit their highest bids to the historic sale prices of surrounding properties, meaning a private sale treaty or tender might be a smarter option.
92 per cent of Aussies who sold made a capital gain on their property.
Private sale or tender
The process of Tendering your property involves advertising it for sale, before receiving offers privately – usually via sealed envelope, and either accepting the most suitable one or rejecting them all. Private sale involves connecting with one buyer and entering into further negotiations with them directly to try and achieve the best deal possible.
These are excellent options for home-owners who have plenty of time to sell and want more control over the process. There is also a chance that someone will make an uncommonly high offer due to the fact that buyers are not made aware of the value of other offers made on the property.
After you sell, you’ll need to arrange a home loan – it’s best to seek out a licensed Australian mortgage broker in order to ensure you get a suitable loan package complete with low interest rates and favourable repayment terms.
