Parkes Phoenix

Auctions Versus Private Treaty

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We are a month into Spring but are yet to see a break in the weather. This has lead to a slow start to property sales, as it is too wet to get onto most prospective properties. This gives us time to look at the options of auction or private treaty. In many cases there are neighbours or parties that might be interested, but it is also important to advertise the sale of your largest asset, in many cases.

These days there are many different options, from traditional newspaper to varied online advertising. Your agent will know which is best for your property. With values where they are, advertising is a small marketing cost that could bring large returns. We are constantly receiving enquiries from outside our local area, showing how much
demand there is for property from Queensland, Victoria and South Australia.

An auction may come with a definite end day, depending on whether the property sells. Auctions come with a higher advertising cost due to the need to push your property onto prospective buyers. It must also be noted that all properties are not right for auction. If your property has been on the market for a while to turn around and put it up for auction isn’t necessarily going to bring buyers out. It may be better to consider where you are advertising or how you are promoting the property’s assets.

Private treaty combined with the right marketing is a good option with rural property due to the many varied considerations, for example the inclusion of crop, sale of livestock, organisation of clearing sales and walk-in, walk-out options. It is easy to say that commission is a cost, as is advertising, but remember this is the sale of your largest and in many cases your final asset. It costs nothing to talk to us and discuss your options.

Our livestock markets have been heavily affected by the weather in recent weeks with numbers varying as roads opened and closed. The sucker market has been solid until last week when we saw numbers increase
and prices fall to between $5.50/kg/dw to $6.00/kg/dw. The weather has meant that many lambs booked in direct have been unable to be delivered and are waiting on farms for a break in the weather. Old sheep have remained strong on minimal supply.

The cattle market has seen feeder steers and heifers fall slightly while cows and heavy cattle remain very solid. We need to consider what numbers are out there waiting to hit the market. Our markets are still very good and even with corrections will still remain solid.

By Geoff Rice

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