Here is how these price rules are applied in the two most popular methods of sale, public auction and private treaty.
A public auction can either have no price guide at all or have a published price guide, which must be in line with the estimated selling price.
The private treaty method has five options:
- Publish the asking price
- By negotiation, with no price guide published
- By negotiation, with a published price guide
- Tender, a method mostly used for Government, commercial & Industrial property where a document setting out the price offered and terms of sale is submitted for unconditional sale by a set date.
- Expressions of Interest. This is where a non-binding submission is presented by the interested parties by a set date for consideration by the seller. Further negotiations are common when seller expectations are not met.
These new laws have not really changed the methodology of the sales process. What they have done is improve the terminology, to provide more clarity for the potential buyer.