LUCAS LAWYERS
The Problem Solvers
CONVEYANCING LAW
Auction or private treaty?
By Harvey Grennan, The Sydney Morning Herald
To get the best price for your home, should you sell by auction or private treaty? The
choice of types of agency is actually broader than that.

Exclusive

Auction

Multilist

Sole

Open
The first three of these are variations of an exclusive agency. An agent will usually
suggest an auction agency or an exclusive agency, both of which give that agent the
exclusive right to sell the property.
If another agent sells it within the agency period without obtaining what is called a
"conjunction agency" from the listing agent, you may have to pay two commissions.
Ask agents before signing up if they give conjunctions to other agents.
If you sign an exclusive agency and sell the property yourself, you still have to pay
the agent the commission.
"Multilist" is where an agent signs you to an exclusive agency on behalf of a group of
agents. Under this arrangement, the listing agent gets a share of the commission if
another agent in the group sells the property.
A "sole" agency gives sole selling rights to an agent but allows you to find a buyer
yourself without paying a commission.
An "open" agency may be given to as many agents as you like and you only pay
commission to the one who sells it.
Agents generally work harder on an exclusive agency than an open agency because
they do not risk spending time on a property only to have another agent make the
sale and get the commission. But ask them: "What will you give me in return for an
exclusive listing that I will not get from an open listing?"
A good auction campaign ensures the property is brought to the attention of the
maximum number of potential buyers, and those buyers have a limited time in which
to conduct their inquiries and make up their mind.
The auction itself creates competition between buyers which can push the price up,
and when the hammer falls you know you have a definite sale.
But the considerable costs of an auction can be lost if the bidders fail to materialise.
There can also be considerable pressure on you at the auction to take a price which
falls short of your expectations.
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Whichever type of agency you select, always read the form carefully at your leisure
before signing it.
Information contained herein is of a general nature and is not intended to address the circumstances of
any particular individual or entity. Advice from Lucas & Associates should be sought if there is doubt as
to the applicability of this information to individual circumstances.
Contact Lucas & Associates
Tel 02 4969 4111
Fax 02 4969 4099
[email protected]
www.lucasassociates.com.au
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