Page 5 - Luton Properties eBook 2018
P. 5
Firstly, there are 2 key differences and then place them in a competitive
between auction and using a private environment. The vendor can either
treaty method of sale. then sell to the highest bidder or
choose to continue negotiations with the
The first difference is the style of highest bidder. This scenario appeals to
negotiating. Private treaty sales many vendors as they would prefer to
negotiations are verbal. Once an negotiate with the best buyer not just the
agreement has been reached contracts first buyer.
on average take between 2 & 3 weeks to
exchange. With an auction if the vendor The auction process also buys time for
sells prior to or on auction day they will prospective buyers to get ready to make
have the advantage of a signed contract their best offer.
with a deposit on the day that they agree
to sell. Many buyers will use this time to:
■ Organise finance
The second key difference is essentially ■ Have their existing home valued
the core product of auction which is ■ Have family/friends and any other
time. The auction process effectively decision makers inspect the property
buys the vendor 3 weeks of time in ■ Have multiple inspections & build
the market to gather more buyers a stronger relationship with the
property before negotiating
From a negotiating point of view it is
of benefit to be dealing with a buyer
who has had time to build an emotional
attachment to the house & to get in to a
position to make their best offer. Many
vendors prefer this option as opposed
to having to make a decision around
a verbal offer they may receive on day
one of marketing their property. This
core product of time allows all parties
involved in the transaction to feel
comfortable in their decision making.
The best method of sale is the one you
are most comfortable with once you have
considered the pros and cons of all the
methods.
Click here to contact your local Luton agent.
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