Methods of Sale
In commercial property there are four alternative methods of sale to be considered. When choosing the best method for the sale of your property you need to have a clear strategy in mind. There are a few misconceptions about different methods of sale. We have briefly identified each strategy below.
When using the Private Treaty method your property is marketed at a set price. This instantly gives potential buyers interest in the property. This method allows your property to be on the market longer than other methods, which can be used as time to negotiate with prospective purchasers.
This method of sale has the advantage of removing the asking price; the responsibility shifts to potential purchasers to come in with their own estimates of market value. The interested parties are to confidentially put in writing their offer with a fixed date accompanied with a 10% deposit. Once a tender has been received the other parties will not be notified of other offers. A Tender is a legally binding document therefore securing the sale.
This is a great method of sale for the right property in the right market. The first period of exposure when a property is new and fresh on the market, is the most critical time of any sale and the auction method does this well. Auctions create a competitive buying environment to help achieve the highest price possible in a small amount of time. When it comes to marketing your properties for an auction campaign advertising cannot be underestimated.
Expressions of Interest
Expressions of interest are used more commonly with the unusual property that could attract limited but good enquiry. Potential purchasers are to submit, by a certain date, offers or expressions of interest in the property. If the property is not sold, the property can be marketed through private treaty. An EOI form is not a legally binding document and any negotiations can proceed past the closing date.