A private sale means your property is advertised with an asking price and buyers make offers directly to you, or to your agent if you use one. There's no auction day and no auctioneer: you negotiate until you and a buyer agree on a price and terms.
What is a private sale?
In a private sale (sometimes called a private treaty sale) your home is advertised for sale, buyers inspect it, and anyone interested puts forward an offer. You can accept, reject or counter each offer. Once a price is agreed, contracts are exchanged and the sale proceeds to settlement. When you sell privately by owner, you take on the marketing and negotiating yourself and keep the commission an agent would have charged.
Before you list: two things to do first
Buyers know that owners selling for the first time may be unsure what their property is worth, and some will open with a low offer to test you. Preparation is the best defence.
1. Choose the sale method that suits your area
Look at how similar homes near you are being sold. If most properties in your suburb sell by private sale rather than auction, there's usually a reason: auctions may simply not draw enough competing bidders there. Following the local pattern puts you in front of buyers on their terms.
2. Do your homework on price
Study recent sales of comparable homes (same street or suburb, similar size, condition and land). Our 1-hour strategy session also covers setting the right asking price. You can also ask a few local agents for their view of the right method and price for your property: some streets, and even some individual homes, do noticeably better one way or the other.
The advantages of selling privately
Selling your property yourself is a big financial decision. Done well, it can save you thousands of dollars in commission and keep you in control of every step.
1. It can be fast
An auction campaign usually runs about four weeks before anyone can buy. With a private sale a motivated buyer can make an offer on the first day and you can start negotiating straight away.
2. Flexibility
There's no fixed sale date. If you're not in a rush, you can wait for the right offer and the right buyer, and you're free to negotiate terms such as a longer or shorter settlement to suit your next move.
3. Privacy
Auctions are public events that attract neighbours and curious passers-by. A private sale keeps the process low-key: inspections are on your terms and the negotiation stays between you and the buyer.
4. Lower costs
There's no auctioneer's fee and, when you sell without an agent, no commission. And if the right buyer comes along early, you won't keep paying for extra advertising.
5. Serious buyers
Many buyers prefer a private sale because the asking price tells them up front whether the home is within their budget. That tends to bring you buyers who are ready to purchase rather than people still browsing.
The drawbacks to weigh up
Selling without an agent also carries risks. These are the ones to plan for.
1. It can also be slow
Just as a buyer might appear quickly, the opposite can happen. If you hold out for your full asking price, it may take a while before someone is ready to negotiate.
2. Pricing takes knowledge of the market
How long a property sits on the market depends heavily on whether it was priced correctly from the start. A home priced above the market can become "stale", and buyers start to wonder what's wrong with it.
3. Getting the price wrong costs money
Set the price too low and you may sell for less than you could have. Set it too high and you'll probably have to reduce it later, which can make you look like a motivated seller and invite lower offers.
4. Less urgency
An auction forces buyers to decide on the day. A private sale moves at a gentler pace, so some buyers take their time, keep looking at other homes or wait to see if something better comes along.
Making the decision
Choose the selling method you're most comfortable with. Talk to people you trust, look at what's working in your area, and get more than one opinion on price. Above all, pick the approach most likely to get the best result for your home, given its location and how the market is moving right now.
If you decide to sell privately, SellPrivate gives you the same exposure an agent would: your listing on realestate.com.au and Domain, a seller dashboard, buyer enquiries straight to your inbox, and guides for every step from pricing to settlement.