Melbourne is the auction capital of the world.
Buyers expect property to be auctioned in our inner city areas, so when a 'private sale' is listed, a property buyer's normal response is 'was the property passed in at auction?'
The rate of vendors selling by 'private sale' has increased substantially over the past 12 months.
Many owners see a 'private sale' as a less risky alternative considering most properties marketed by this method don't have the same advertising expenditure for the owner. If a vendor doesn't sell, then there's less to cough up in terms of advertising money.
Many people ask me 'is a private sale an effective way to sell?'. The answer is yes, providing the property is priced right.
Often when a property is first fresh on the market it has it's best chance of selling well. Price the property too high from the start and a vendor can easily end up worse off as a result. The market comes through and they don't come back unless they see a discounted house.
A property buyer can do well by targeting a 'private sale' that has been sitting on the market for some time. As the price drops and the motivation of the vendor increases, a good purchase can be had.
Buyers can procrastinate when buying a property under 'private sale' conditions as well. The pressure is 'seen' as eased as no deadline looms like an auction date. However, if it's well priced and what you want. Don't wait act! Speed of making a decision to offer and purchase is paramount with Private sales.
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