Things are heating up in Sutherland Shire property – with the RBA cutting the cash rate to the lowest in two years, buyers are coming back to the market to take advantage of reduced borrowing costs. Is now the time to get your house out there and secure the price you deserve? It could be.
But, when it comes to selling a home here in the Shire, there are two methods to choose from and they each come with their pros and cons: auction and private treaty sale.
So, which is best? Let’s talk about it.
How do property auctions work in the Sutherland Shire?
What is a property auction?
Keeping things simple, a property auction is what you’ve probably always imagined it is!
Here, we’d put up your home for auction, scheduling a time and place for buyers to gather and bid. Buyers compete with one another to place the highest bid, and it’s sold then and there to whoever wins. This can be both a very emotional and exciting event, attracting a lot of attention.
Auctions often draw in invested buyers ready to bid, with fewer ‘window shoppers’. While a wide range of people will likely attend (including confident first-timers), nervous buyers may find it a little intimidating unless they have a real estate agent helping them.
Why sell your Shire property at auction?
There are loads of reasons to consider an auction over a private sale, with some of the most common being:
- Competition: The heat of competition on the day gets everyone excited, often leading to higher prices.
- Clarity and transparency: Buyers always know what everyone else is bidding, making it a very transparent process.
- Control: You set the dates, so you’re more in control of the sale deadline.
- Immediate sale: Unlike private sales, there’s no ‘cooling off’ period – your home is sold on-site to the highest bidder.
This combination of excitement, clarity and urgency makes property auctions quite popular for homes in high-demand areas (where it’s easy to find eager bidders) and for unique properties (where demand for the property could push up the price).
Learn more: What are the steps in selling a home? The timeline simplified
And how does a private treaty sale work?
What is a private treaty sale?
A private treaty sale is what you might call the more typical approach – you list your property for sale with our team, and we get out there and market it to potential buyers. Those buyers then make offers based on your asking price and what they are willing to spend.
When everyone agrees on the price, there’s a cooling off period. Here, the buyer can still walk away, giving them time to sort their finances and conduct additional due diligence (like inspections). In the Sutherland Shire, the cooling off period is five days.
You might get more window shoppers during a private sale, as it’s common for buyers to attend open homes as a part of their research process. However, the more relaxed, face-to-face nature of the sale can be less intimidating for newer or less confident buyers, leading to this method typically attracting a bit of everyone. That said, you’ll need to be on the lookout for experienced investors looking to make a low-ball offer. Haggling is, of course, something we can help you with!
Why sell your Shire home privately?
Private treaty sales aren’t better or worse than auctions – they’re different strategies for different properties. Some of the reasons people enjoy the private sale process are:
- Flexibility: You can negotiate with each buyer, giving you a lot of choice in who you deal with and the price you can get.
- No set timeline: With no immediate sale, there’s time to think, haggle and review every detail.
- More personal: This method often appeals to those who like a more personal, face-to-face approach to selling.
- Added privacy: Not everyone is comfortable with the public knowing their sale price, and that’s OK. Here, you can keep it private.
Some sellers find the private sale process less stressful, with no big event to manage and a relaxed opportunity to meet each buyer. This process is also more popular for properties in low-demand areas, where it might be harder to find enough bidders to host an auction.
How long does it take to sell a home in the Sutherland Shire?
Depending on demand, after a home hits the market, we’d typically expect it to sell in anywhere from one to three months. Auctions can often move a little faster (one to two months), while private sales – with the extra negotiating and cooling off – may take two to three months.
Learn more: How to stage your home for a quick sale
Comparing the pros and cons…
So how do these two sales methods compare? Remember, there’s no right answer. It’s all about you, your market and what you want from your sale.
| Auction | Private treaty sale | |
| Control | You control the auction date and reserve price | You control the asking price; the rest can be negotiated |
| Exposure | Often higher, to reach a wider audience and secure a good crowd | Typically more targeted and discreet, to find the ‘right’ buyers |
| Speed of sale | Generally quicker No cooling off period | Generally more relaxed Five-day cooling off period |
| Type of buyer | Anyone could attend, but confident buyers and investors are more common | Could attract a bit of everyone, including ‘window shoppers’ |
| Price certainty | Minimum reserve must be met | Often very negotiable |
| Getting a higher price | Possible in the heat of the moment | Possible if you negotiate with certain conditions |
| Stress levels | Can be higher | Can be lower |
If this is your first time, it may seem that an auction sounds a bit more stressful than handling things off-market. Just remember that, at the end of the day, it’s all about the result. If an auction is what will generate better results for your home, then any extra stress could be well worth it.
Still, if you’re not sure, let’s talk. Our team will help to take that pressure off.
How to choose whether an auction or private sale is right for you
When you’re ready to start narrowing down your preferred option, here are a few factors to consider:
- Timeline: Do you want a relaxed sales process or an urgent one?
- Market conditions: Are you in a hot market, or has demand dropped?
- Your property: Is your property going to be in high demand, or are there many comparable options on the market?
- Target market: Who are you hoping to speak to – veterans, first-time buyers, investors?
- Desired price: What did similar properties to yours sell for recently? Were they sold privately, or at auction?
- Budget: What’s your sales budget? Do you have room for a big marketing campaign?
Learn more: The 10 most common home selling mistakes
Not sure which approach is right for you? Let’s talk about your property.
Helping you with these decisions is all part of the service here at MattBlak. We’re one of the Sutherland Shire’s most trusted property agents and there’s a reason for that – we’re locals too. It’s our mission to make sure everyone in this wonderful part of Sydney gets the price they deserve.
To take the next step, get in touch for a free property evaluation.