Ever wondered why when you see the property programs on television they are dominated by Auctions???
For some states in Australia there is a real Auction culture for example Victoria almost every property sold is sold by Auction. Things are a little different in Queensland with the vast majority of sales being by "Private Treaty".
So why Auctions??? What does the jargon mean?? Do they work??
So many questions too many to answer in one post so over the next few weeks I will be talking about the various advantages and disadvantages of Auctions, the language, the process, what you need to know as a buyer and a seller.
If you have any questions, thoughts or comments just add them to the comment section at the bottom of the post and I will do my best to answer them for you.
So lets get the language right:
Private Treaty - is the method of selling that involves advertising it for a price, conducting Open Viewings and eventually presenting a contract that may go back and forth for a few days changing terms or adjusting price until everyone agrees and the contract is signed. Then over the next week or two weeks the buyers conduct thier building and pest inspections and get their finance organised, this may involve further negotiation and price adjustment as well as changes in settlement dates. The contract then goes unconditional and on a designated date it settles.
Auctions: - is the method of selling that involves advertising the property to prospective buyers, conducitng Open Viewings , allowing the buyers to organise their finance, complete searches and inspections for building faults and for pest damage and then on a designated day bringing all the intersted buyers together in a spirit of competition to bid in an open forum for the property. The contract is signed - is immediatley unconditional - and settles according to the terms of the Auction.
Next time : Do Auctions cost more ??????