Finally get off the rollercoaster of offering #allthethings by uncovering your true potential
Expert buyer’s advocate, founder of Amy Lunardi Property and the host of The First Home Guidebook - an educational podcast & online course
that empowers first-home buyers with all the necessary tools and knowledge needed to buy their first home.
When it comes to buying a property in Australia, you’ll come across 2 methods of sale: auctions and private sales. In this post I’ll break down the differences including the benefits and drawbacks of each (although you don’t really have a choice as its the agent/vendor who will decide what method they use!)
Alright, auctions can be a bit nerve-wracking. We’ve all seen those intense bidding wars on TV where people go wild for their dream homes. But let me tell you a little secret: auctions don’t always end in a frenzy. In fact, some properties sell for less than expected or don’t even get any bids at all! Talk about anticlimactic, right?
Here’s the deal with auctions: once you sign that contract, you’re locked in. No take-backsies. So, it’s crucial to do your due diligence beforehand. Get those building inspections done, sort out your pre-approval (and make sure its fully assessed), and be ready to bid with confidence. Sure, there might be a bit of upfront cost if you miss out, but hey, at least you tried, right?
The best part about auctions? Transparency! You can see who you’re up against, no sneaky business here. Plus, there are rules in place to keep things fair and square. No fake bidders or agents playing favourites. It’s all about the highest price, and if you’ve done your homework, you can snag that property without any regrets.
Private sales are like a box of chocolates. You never know what you’re gonna get. There are no standardised rules here. Each agent has their own little game plan. It’s like playing a game of “Guess the Offer” or “Let’s Make a Deal.” Will they reveal the other offers? Will they negotiate? Are they bluffing?!
But hey, there’s a silver lining. In private sales, you can have some conditions. Need a building inspection or waiting for finance approval? No problemo! Just keep in mind that too many conditions might weaken your offer, especially if there’s competition. So, find that sweet spot between flexibility and a killer offer.
The downside? Less transparency. You won’t see the other buyers or know what they’re offering. It’s like trying to play poker blindfolded. Talk about suspense! You’ll need to ask the agent all the right questions to navigate this maze and make sure you don’t miss out on a hidden gem.
The Verdict: Auction or Private Sale?
Now, here’s the million-dollar question: which one’s better? Well, if I HAD to choose, I’d go with auctions. They offer transparency and clear rules. However, the prevalence of auctions vs. private sales depends on where you are. Big cities and high-demand areas lean toward auctions, while regional spots tend to favour private sales. So at the end of the day, you don’t really have a choice as to what sale method you’ll be faced with, but just remember that auctions aren’t always a chaotic roller coaster, so they certainly shouldn’t be avoided if it’s the right home for you.
Want to learn more? Check out my online course The First Home Guidebook to help you buy your first home faster – without the fuss.
If you’re looking for professional support for buying a property, check out my buyer’s advocacy services over at Amy Lunardi Property.
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