METHODS OF SALE FOR RESIDENTIAL PROPERTY

Abstract

Real estate transactions are fundamental to the economy in general, and property market, in particular. However, most market participants are not conversant with all the various methods of sales available as the majority of properties are being transacted by the traditional method, that is, private treaty sale. In addition to this common method, other methods available are sale through auction and tender. This dissertation attempts to study all the three methods of sales with the focus on the various sales process. A case study for each method of sale is included to highlight the method. In addition, both advantages and limitations of the various sales methods are discussed. An analysis of transaction prices attained through auction and private treaty was also carried out to give a test if there is a difference between the prices. The analysis shows that private treaty sales do achieve higher selling prices for high-rise private residential properties than auction sales.