Methods of sale
Sale by way of auction
This is the most popular method of sale for commercial and industrial properties, particularly those valued at under $10 million, and has proved to be the most successful sales method for this sector of the market. This is reflected in the clearance rates of auctions run in conjunction with Total Property portfolios, which are currently in excess of 70%.
Auctions are a highly transparent process enabling purchasers to see where their competition is on the auction room floor. A reserve price will be set in consultation prior to the auction and the property will be declared “on the market” only after this price has been met. When a property is sold at auction the sale is unconditional, and a non-refundable 10% deposit is required to be paid. The settlement date is predetermined prior unless the purchaser has asked for a variation to this prior to auction.
Sale by way of tender
Tender is a popular method of sale particularly for large, more complex properties. Prospective buyers prepare and submit confidential written offers for a property for consideration.
Following the tender deadline, all tender’s are provided to the seller to weigh up offers and conditions and decide which, if any they want to accept. There is no reserve price and no obligation to accept any of the tenders made. Unlike an auction, the seller does not have to sell to the highest bidder. They may seek to negotiate with any tenderer with the aim of reaching agreement.
Sale by way of private treaty/negotiation
A sale by private treaty/negotiation generally involves a fixed price in mind, not necessarily disclosed in marketing material. Each prospective purchaser will be asked to make a signed written offer and sellers will have the opportunity to negotiate with you on price or conditions. The process encourages both conditional and unconditional offers and all offers will be presented to the seller to weigh up. This means no time pressure is put on vendors or purchasers, purchasers can make conditional offers on the property at any time during campaign.
Sale by way of deadline private treaty
A sale by deadline private treaty involves marketing the property with no disclosed price, emphasising the features of the property. Each prospective purchaser will be asked to make a signed written offer and the vendor will have the opportunity to negotiate with you on price or conditions. The process encourages both conditional and unconditional offers and all offers will be presented to the seller to weigh up.
The vendor can be satisfied that the property will have been effectively promoted to 100% of the target market including all purchaser groups including special interest parties on a sale basis. Opening up the property to all buyer categories will ensure that the maximum value is achieved through an open and publicly contestable process. (This is only possible due to the flexibility of this process compared to the strict nature of auction).
Sale by way of expressions of interest
Expressions of Interest is most commonly used when there are multiple possibilities for the sale or lease of a property. The process invites both conditional and unconditional offers, upon close of the offer period it is up to the vendor who they negotiate with.