We have written in the past about auction vs private treaty and the different ways you can sell a home, but a great deal has changed so let’s revisit the topic of Mosman home-selling strategies in 2021.
Once you decide to sell, your agent will speak to you about the different options you have. The final decision will come down to your preference as well as their recommendation.
Here are the most common ways to sell a home.
Selling off market is popular in areas like Mosman, where people value their privacy. Sometimes referred to as ‘pre-marketing’, off-market sales take place without public advertising.
The rise of buyers’ agents has been key to the success of this strategy. In the past, the risk of a private sale was that you were relying on your agent’s database. Now, as well as having a database to reach out to, your agent should have good connections with buyers’ agents both in Australia and overseas. This will give your property exposure to more interested parties so you can still benefit from competing offers.
Talk to your agent about the pros and cons of an off-market sale. It may help you because it tends to be a fast property sales strategy, especially in a popular area. A committed agent will also ensure discretion so you feel comfortable that your privacy is protected.
For high-value homes, an auction tends to be the winning way to sell. When you use this strategy, you have the property on the market for a few weeks with an advertised auction date. People view it and have the option to place pre-sale offers, which you can consider if you want to.
At the auction, bidding takes place live. The more bids from buyers, the higher the price goes.
People can tune in remotely to bid; a trend which has become more popular in COVID times. This widens the market and gives you a better chance of achieving a result that exceeds your reserve.
Auctions make sense because they create urgency and competition. If the property fails to sell, you have the option to negotiate with the top bidders. When you sell at auction, the winning bid is final, with no cooling off period.
In Mosman, the auction clearance rate is high, sitting at 90 per cent (according to recent figures quoted on realestate.com.au). Considering these results, it is easy to see why many people choose to sell this way.
Private treaty sales aim to take place reasonably quickly. You prepare the home, your agent lists it for sale and you wait for the offers to come in. If there are multiple offers, your agent will find the buyer who is willing to pay the highest price. When there is only one interested buyer, your agent will work with them to help them understand the value of the home so they don’t walk away.
Generally speaking, you are doing well if you negotiate a private treaty sale within less than four to six weeks. However, the stressful aspect of private treaty sales can be wondering if a better offer is around the corner. It’s worth keeping in mind that the best offers tend to come in early, from buyers who have been looking for a while and are motivated to secure a home before anyone else.
A good Mosman real estate agent will be honest with you about whether you should take an offer in a private treaty sale. They will do a great deal of work to attract as many buyers as possible and show them why the home is worth the asking price.
The risk with this strategy is that your home will go ‘stale’ on the market. The longer it is advertised for, the more people will assume there is something wrong with it. You may need to work with your agent on a relaunch strategy if there isn’t a strong enough offer in under two months.
Silent auction / expressions of interest
This is a less-favoured strategy whereby interested parties are invited to submit their top bid privately, without knowing what others are offering. In some cases, you may get an offer tens of thousands or even hundreds of thousands of dollars above the rest.
If an agent offers a silent auction or sale by expressions of interest, be aware that many buyers don’t appreciate the lack of transparency involved. You may lose potential buyers because they aren’t comfortable with the approach.
What property sales strategy is right for you?
In Mosman, most homes go to auction because there is such high demand. Because there is so much interest in the suburb, sometimes early offers come in which are worth taking, to save the stress involved with the auction process.
Your best strategy is to work with a real estate agent who understands your goals and your hopes for the next phase of your property journey. They will work on a plan that makes sense and will get you where you want to go.