Selling through private sale versus auction: What you need to know

When it comes to selling your Balmain real estate, there are a number of different questions that get regularly thrown around within the industry. However, one of the more important ones to concern yourself with is this: how will you sell your Balmain property?

There are a number of benefits and drawbacks to both selling privately and through auction. For example, private sales are inherently less intimidating for buyers - especially first home buyers.

The lack of competition could help you sit down with potential buyers and tease out a fantastic property deal. Furthermore, the costs of a private sale can end up being less than an auction on your end, helping you to reap the maximum financial benefit possible from your home sale.

However, one of the limitations of a private sale is the extended periods of time they can be prone to falling into. Unlike auctions, private sales don't necessarily have a 'final date', per say.

There is also a lot more wiggle room in terms of buyer negotiations, transferring the power from seller to buyer. This highlights the benefit of having your home properly priced from the beginning, to reduce the amount of time wasted.

On the flip side, auctions foster an environment of competition that could be extremely beneficial for you and your home's value. Often this means a sale price that exceeds the original sale price, maximising the return on your home.

The added protection of a reserve price means that you home won't sell unless it reaches a pre-approved price - potentially helping you to secure the minimum amount of return you expect for the property.

But there are extra costs associated with running a successful auction that would be worth discussing with your real estate agent. Their advice will help you to choose the type of property sale method that best suits your own circumstances.