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.

Key benefits of an effective auction process

1. Highly effective way of creating buyer competition to ensure that the best possible price is achieved.

2. Places a time frame (usually four-to-five-week period) on the sale which instils urgency into the mind of prospective purchasers.

3. Interested parties are provided with relevant property information allowing them to undertake due diligence well in advance of auction day.

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, we will provide all tender’s to the seller to weigh up offers and conditions and decide which, if any you 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. You may seek to negotiate with any tenderer with the aim of reaching agreement.

Key benefits of sale by tender

1. Tenderers are encouraged to complete due diligence and have their finance in place prior to submitting a tender, reducing the time delay between acceptance and settlement.

2. Sets a specific timeframe within which a formal offer must be made, usually a four-to-five-week period to allow purchasers to carry out their due diligence.

3. Purchasers are required to submit on the vendor’s pre-determined conditions.

Sale by way of private treaty/negotiation

After careful consideration and analysis of the nature of your property, the current market and target buyer groups, we recommend sale by way of private treaty/negotiation in order to achieve the best possible outcome for your asset.

Key benefits of sale by private treaty/negotiation

1. The property is offered for sale with no fixed price.

2. No time pressure on vendors or purchasers, purchasers can make conditional offers on the property at any time during campaign.

3. The process encourages both conditional and unconditional offers due to the flexibility of the process.

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 you will have the opportunity to negotiate with them on price or conditions. The process encourages both conditional and unconditional offers and all offers will be presented to you to weigh up.

Key benefits of deadline private treaty

1. 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 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).

2. It has no sale price, allowing purchasers to focus on the property features to value the property on their own basis.

3. It places a definite timeframe on the sale process, which concentrates the interest of prospective purchasers to act on the property with more urgency, creating a competitive environment.

4. It enables the vendor to focus on the sale of the property in an orderly manner within guidelines, terms and conditions set.

5. It provides a coordinated approach to the sale of the property, based on a professionally prepared information report. Such an approach provides consistency of information for sale.

6. It is a recognised and an accepted method of sale by all purchasers. It is a recognised and an accepted method of sale or lease by all purchaser and tenant categories.

7. The Deadline Private Treaty process allows for the vendor to have full control and be involved in the entire process from marketing to the final sale negotiations.

Sale by way of deadline private treaty

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.

Key benefits of sale by expressions of interest

1. Parties are required to register their interest in the property within a certain period.

2. There is no set price, so price is not an objection.

3. Places a time frame (usually four-to-five-week period) within which an offer needs to be presented. This instills urgency into the mind of the prospective purchasers.