Last week we covered the pros and cons of selling via auction. This week we will discuss the pros and cons of the private treaty sales method.

Many agents present strong arguments for auctions which makes it difficult to choose between auction or private treaty when selling your home.

The private treaty method of sale hinges upon the negotiation skills of your agent, and there are many agents operating who have no training in negotiation, which means that they will always advocate that you choose auction, when deciding between auction or private treaty.

So let’s take a closer look at the private treaty method of sale in more detail:

Private Sale / Treaty


  • Less intimidating for buyers; For many, the thought of an auction can be quite overwhelming. For this reason, private treaties can be beneficial in that sellers have more time to consider offers made by potential buyers and vice versa.


  • Cost; Selling via private treaty can often prove to be less expensive than an auction. At Hilton Parkes, we charge no upfront costs for sale, which means that if the home is not sold, you pay us nothing. We bear the risk.  When selling via auction quite often there is an upfront fee for marketing, auctioneer etc all borne by the vendor. If the property is passed in, the amount is still payable.


  • Privacy; As a private treaty occurs through a negotiation process, it provides greater privacy and enables you to keep the specific details of the sale out of the public eye.


  • Negotiation; If your agent is a trained negotiator they will want to spend one-on-one time with the buyer so that they can go to work in the negotiation to get you the most money in your bank account.


  • Most money in the bank account; If we really love a product from the supermarket, do we offer to pay more than we have to, in order to buy it? No. In an auction environment, the highest bid is only slightly more than the underbidder. In many cases, we find that the buyer was willing to pay more (some much more) for the property. This means that the owner walks away with a significantly diminished sale price, as well as a hefty advertising bill (usually more than $5,000).



  • Price; The price/time equation comes into play with a private treaty. In order to sell your home quickly, you must research the recent sales in your area, so that you have a realistic idea of what your property may sell for. The temptation is to enter the market at a high price, but this leads to a stale property listing, which may sit on the market. It is best to contact our expert negotiators so that they can help you to understand where your property sits in the market.


  • Flexibility; The vendor may need to be more flexible when selling via private treaty because there is no specific end date. This means that when the vendor considers proposals they should not only consider pricing, but also settlement dates.


  • Time; A property can be on the market and not in the market. This means that if a home is overpriced when it goes to market there may be a delay in interest until the property is priced so that it is “in the market”. If you would like to know what your home may be worth in the current market, please contact our expert negotiators here.


Whilst this list is not exhaustive, these are some of the key pros and cons of auction or private treaty to help you through your considerations.

Our advice is to talk to one of our real estate agents who will be able to offer tailored advice, dependent on the market and your specific property. At the end of the day our team wants to sell your property for the very best price, so get in touch.