The moment you decide that you want to sell your home, one of the first things you need to do is choose how you want to sell the house. One of those options is selling by private sale. There are two types of private sales, and there are corresponding pros and cons for both. These are worth checking out if you need help making your decision.
Fixed Price Private Sale
A fixed priced sale is one of the most traditional ways of selling a property. In this kind of transaction, you will set a clear price range for your home. Setting a price range can be done with the help of a real estate agent or you can do it yourself with some research. The goal is to set a price that is the most accurate reflection of the current market value by comparing your home with other houses in your area. After setting the price, you can proceed advertising your sale.
Once your house is listed, your potential buyers will simply have to decide if they accept the price range or not. If they do, they will make an offer and it will be up to you to decide which buyer you want to sell your house to.
Advantages of the Fixed Price Private Sale Method
• Setting a fixed price for your home takes away the possibility of further
price estimations. This will help attract potential buyers who are sticking to
a certain price bracket.
• When it comes to the fixed price sale, you have the option to set a deadline
or leave the sale date open. If you don’t put a deadline, your potential buyers
don’t feel the pressure to act quickly. A lot of potential buyers appreciate
this.
• The fixed price method is an open selling process. This means that potential
buyers who don’t like the competition in auction sales will feel very comfortable
with the way you sell your property and they will be encouraged to submit their
offer.
Disadvantages of the Fixed Price Private Sale Method
• Choosing the fixed price method can be difficult if you are not able to
set the right price. If you set the price too high, then there’s a great chance
that your home will be sitting on the market for a while. If you choose too
low, then you are ultimately losing profit.
• If you do not set a deadline for the final sale, it might take a long time
before you get a serious buyer.
Deadline Private Sale
Another kind of private sale that you can consider is selling a home with a set deadline but without a set price. When it comes to this method, your potential buyers will compete against each other to purchase your home in a given time frame. You typically receive offers confidentially in sealed envelopes before the deadline ends.
Advantages of the Deadline Private Sale
• A deadline private sale is more adventurous because by setting a deadline,
you create a sense of urgency. This can drive up competition and you might end
up with a great offer in a short amount of time.
• With a deadline sale, your potential buyers don’t need to compare prices with
other properties because they don’t know what your price expectations are. This
means they might end up giving you a higher offer than what you expected.
Disadvantages of the Deadline Private Sale
• A downside to a deadline private sale is not receiving an offer that you
like in the time frame that you gave. You might end up with a bunch of offers
that are lower than your ideal price.
• In deadline private sales, potential buyers might add conditional clauses in
their offers. For example, they might say that they will only be able to pay
you after a financial approval or after they have sold their own property.
Simply put, you might end up with offers that have conditions that will delay
the actual payment for your home.
Now that you know these pros and cons of selling your home through private sale, you can go on with it or you can choose to sell to a trusted real estate investor like Blue Hen Homebuyers instead. Blue Hen Homebuyers is willing to take your property off of your hands, and the best thing about it is there are no fees or commissions to worry about.
Are you selling a property in Jacksonville, NC? Then contact us at [email protected] or call us at 910-802-2222.