Traditionally, private sales have meant properties have been listed at a set asking price with purchasers being invited to make offers against that price. More recently, price ranges have been used e.g. $280-$320,000 for private sale; this being more akin to the auction method of sale.
Private sales main strengths are:
1. Greater appeal to purchasers – given the recent averse publicity about the auction method of sale.
2. Time frame flexibility – the right purchaser may appear in a time period longer than required for a traditional auction period of 4 weeks.
3. Lower marketing costs – Most advertising budgets for private sale require less financial resources than typical auction budgets.
4. Less stress for vendors and purchasers alike.
5. More flexible terms and conditions for purchasers that are not possible to be used under the auction method which relies on an unconditional sale
Private sales main weaknesses are:
1. No set date for purchasers to compete with each other as under the auction method.
2. Conditional contracts may not be in the vendor’s interests – subject to finance or builders inspection for example
3. Inability to negotiate the selling price upwards when only one buyer is running on the property.