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This week in Property Review Weekly, Hodges Caulfield director Alex Flamm, discusses the pros and cons of both private selling and going to auction.

Auctions are a public event and as a result they draw a lot of attention. The energy on auction day is often palpable, with the crowd consisting of those who believe they’ve found their dream home, supporters of the vendor and a selection of the merely curious.

It will then surprise some to learn that approximately 75 per cent of properties sold in Australia are done so privately. There are both pros and cons to each of these sale processes, so it’s important to take all of these considerations into account and make a decision based on which factors matter most to you.

Private sales are more discreet, which for some vendors is critical. Furthermore, selling your house at auction is generally a more emotionally demanding experience, as the whole process is very much reliant on the outcome of one day. In contrast, when selling a property privately the vendor has more control over inspections and negotiations and can opt for a quicker or more drawn-out process.

There are benefits to the immediate and pressurised nature of auctions though. Auctioneers produce a sense of urgency, which encourages prospective buyers to bid for fear of missing out. Private sales lack this sense of urgency and competition and negotiations are generally around convincing the vendor to lower the price, rather than competing parties pushing it up.

Private sales are also typically more cost effective than auctions as they require less extensive marketing campaigns and auctions can require specialist auctioneers.

While there are distinct benefits to both selling privately and going to auction, this decision should always be made on a case-by-case basis. Seeking the advice of professional can be invaluable in helping you make this important decision.