The Auction Method
This method is great for homes that are highly desirable or hard to price exactly.
The auction method leaves the outcome open whilst also accelerating the sale process by placing a closing date on the marketing process, this really does compel buyers to make a buying decision prior to the auction date, which can create and heighten the sense of urgency and excitement in the buyer's minds and ultimately help the premium price formula for some properties.
Auction isn't for all homes however is invaluable for others. A common misconception about auctions is that it costs more to go to auction. This isn't necessarily the case, it is the marketing plan associated with the type of property rather than the auction process itself.
Private Treaty (Normal For Sale )
This method is suited to homes that are easy to price or have firm comparables that are readily worked off allowing your agent and or the owners to agree that the value of the home is easily gauged within 2 or 3 % of its estimated value.
If a home is easy to price and has several close comparable sales that are recent then this is the way to go. The private treaty method gives the market place total clarity on what you are asking for your property and is received very well by the market. The only danger with this method is if not used on the right home you can run the risk of overpricing or underpricing your home very easily if not assessed properly in the beginning, which can be a very expensive mistake.
Quick tip, If you think lots of people will love your property and the price could vary between purchasers, auction your home. If you can price your property accurately and feel the buyers will agree with your price point based on recent comparable then the private treaty is the way to go.