Private Sale Real Estate

Real estate involves the selling and acquiring of property through auctioning or private sales carried out by realtors and property owners. Private Sale Real Estate also referred to as the private treaty is a selling technique used by the property owner so as to sell property listings. It is a rather broader selling technique than auctioning in that, interested buyers make offers and send in responses privately unlike in auctions where by buyers place competitive bids from which the highest bidder makes the purchase.

Private sale

A private treaty is a less confrontational way of selling a property and property visits are done according to the buyer’s schedule. This method can be carried out by implementing either of the following two ways:

Carrying out a private sale with a fixed price

Here the property owner states the selling price and then the property is listed up for sale. The seller and agent get to advertise the property and invite prospective buyers to send in offers and proposals. Though fixed, the price can change based on negotiations before the final decision is made and the sale is settled. Once settled, the final price agreed upon is usually indicated in the contract.

Carrying out a private sale on a deadline

This private sale usually runs on a due date, but keeps the price bracket open for buyers to make offers within the given period. With such a timeframe, a buyer feels a sense of aptitude that intrigues the buyer to offer the best price possible for the property. With the most preferred price in mind, the seller then evaluates and contacts buyers to finalize on the sale. In some instances, the seller gets to state a certain range of expected selling price, but might limit the buyer’s ability to explore. Having a deadline helps the property to get out of the market much quicker before market prices alter.

Benefits of carrying out a Private Sale Real Estate, by stating the selling price, the seller creates a sense of security in that the buyer gets to feel the worth of the property being purchased.

A time bound sale gets out of the market a bit faster, bringing in good returns and cutting down on the advertising expenses.
Private sales are a bit more flexible on the contract clauses during a negotiation.

In case the buyer cancels the contract during the cooling off period, a percentage of the deposit is foregone by the buyer.