Buying a house can be a stressful and complicated process. Whether you are buying your first home, or wanting to upsize to something more comfortable, it can be exhausting just thinking about it all. The two main approaches are through an auction or a private sale. Here we will examine the benefits of each of them.
Auction
- Fixed Timeline – With an auction, the dates and times for the sales are typically set beforehand, so you have a definite understanding of when the process will all be completed. This can appeal to those looking for a quick resolution when it comes to closure on the purchase, so they can move on and start planning ahead. This is certainly something to consider when it’s an auction vs private treaty.
- Transparency – With the auctions offering transparency, this is something that can be seen as a real plus for buyers. When the auction is taking place, potential buyers can see bids going in in real time, which also means they can have a better understanding of the true market value of the property.
- Speed – This ties in with the fact that the auction takes place under a fixed timeline. With that happening, the sale process usually proceeds quicker, as the auctions have to be completed within a certain timeframe. This eliminates the possibility of the process dragging on and on, saving from a lot of stress and uncertainty.
- Binding Contracts – Once a bidder has been successful at an auction, they usually have to immediately exchange contracts and pay a deposit. This then creates a legally binding contract, which puts any fears of the bidder’s bid not being followed through as the winning bid, securing the property they wanted to purchase.
Private Treaty Sale
- Privacy – Compared to an auction, a private treaty sale is more private, which may be the preferred method of purchase for some buyers. People who value privacy around finances may prefer this option. Take a look here for advice on purchasing a home.
- Less Pressure – In a private sale, you have far more control and possibly self-control, when it comes to making a huge decision. There is time to digest and discuss any issues with the people that matter in the final decision, which really helps mitigate any impulsive decisions, which you may regret later on.
- Flexibility – When settling on dates, conditions, and the final price, both the buyers and sellers in this situation have more flexibility to negotiate and come to a decision that suits everyone. Time isn’t as much of an issue, so getting everything right for all parties involved is more likely, as the pressure is off a little.
So, in the end, it is important to take numerous factors into consideration. There is no ‘One Size Fits All’ with purchasing a house, so be sure to do your research, and make sure that you are fully aware of how both auctions and private treaty sales work. For more information on buying a home where you are, click here.
