You can choose how you would like to sell your property. The 2 most common methods of sale are Private Treaty & Auction.
• You make your offer to the agent
• Agent legally has to present every offer to the vendor
• Agent will work through the negotiation process between you and the vendor
• Price is agreed by both parties and the offer is accepted (subject to conditions if stated)
• Once any conditions are fulfilled a contract of sale is signed by both parties
(with a 48 hour cooling off period)
• You will then be required to pay a deposit which is held in an interest bearing account until settlement
(any accumulated interest being divided between you and the vendor).
• The settlement date is set and agreed to by both parties
• Many properties going to auction do sell prior to auction date, so if you’re serious about purchasing the
property you may have to act quickly.
• If you’re planning to bid at the auction, you must provide identification and register with the agent prior to
• The auctioneer will inform bidders of the increments to bid in.
• It’s common for the opening bid to come from the vendor.
• You can bid verbally or non-verbally at any time.
• As the vendor has already set an undisclosed reserve price before the auction, if the price is not reached,
the property will be passed in, which means it has not been sold.
• A private negotiation process can begin with the highest bidder having the first opportunity to negotiate a
purchase price through the real estate agent.
• If during the auction the reserve price is reached, or surpassed, the highest bidder automatically secures
the purchase of the property.
• The successful bidder is then required to pay a 10% deposit, on the day, in the form of payment stated by
the real estate agent prior to auction.
• It’s recommended that you insure the property at this point.
• There’s no cooling off period with auction sales, you’ll lose your deposit and may be sued for breach of
contract and will be liable for associated costs if you change your mind.
• As with sales by private treaty, your solicitor, conveyancer or settlement agent will then take care of the
conveyancing and settlement process until the property is legally handed over to you.