The REIV recently issued guidelines for the advertising of property for private sale. These guidelines advised member agents that a single price should be displayed on advertisements for property that is being sold in this manner.
A single price gives prospective purchasers certainty and provides transparency.
In the past few years we have noticed the increasing use of advertising methods which reduce the transparency of the most popular selling method in Victoria.
Some private sale advertisements have used methods commonly associated with auctions, such as a ‘price range’ or ‘price plus’.
From our point of view auctions and private sales are very different methods of selling property.
Sale by auction provides a high degree of transparency to all parties. Interested buyers are invited to bid for the property on a specified day. If the vendor’s reserve is reached then the property is sold under the hammer in full view of the public. Importantly, interested parties generally know exactly when the sale will occur and have every opportunity be the successful purchaser.
Private sales present a different scenario. Unlike an auction there is no date and time at which the property will be offered for sale. Rather, there is a price and prospective purchasers are invited to buy the property for that amount.
Prospective buyers should have certainly that the home is able to be purchased for the price that is displayed in the advertisement. If a ‘price range’ or ‘price plus’ method is used buyers have no way of knowing what the vendor actually wants.
With a single price being advertised the prospective purchaser has the freedom to offer more, or less according to their budget and interest in the property.
When a single price is listed, prospective purchasers are able to effectively compare the advertised prices with their budget and spend time inspecting properties that they can afford.
If interested in learning more about this update please contact me today!
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