Methods of Sale
This is one the most popular and successful methods of sale for commercial and industrial properties, particularly those valued at under $10 million. Bayleys’ clearance rates in auctions run in conjunction with our Total Property portfolios are currently in excess of 70%.
Auction is a highly effective way of creating buyer competition to ensure that the best possible price is achieved and allows the vendor to determine the terms and conditions of sale. The auction process usually places a 4 to 5 week period on the sale which instils urgency into the minds of prospective purchasers. If an acceptable offer is received prior to the auction, then the auction date may be brought forward.
When a property is sold, the sale becomes unconditional, and a non refundable 10% deposit is required to be paid. The date for settlement is generally one month from auction.
Tender is a popular method of sale particularly for larger, more complex properties. Prospective buyers prepare and submit confidential written offers for a property to the agent for the seller’s consideration. There is no reserve price and the vendor is under no obligation to accept any of the tenders made.
Following the tender deadline, the agent will provide all tenders to the seller who can weigh up offers and conditions and decide which, if any, they want to accept.
Private Treaty/For Sale By Negotiation
This generally involves the sale of a property with a fixed price in mind, decided by the seller in discussion with the agent.
The price will not necessarily be disclosed in marketing material, particularly when it is hard to estimate what a property is likely to sell for. Prospective buyers make offers and the seller will negotiate with them on price, through the agent.
There is generally no timeframe around this sales process, so there is less pressure on vendors and purchasers.