Private Treaty Sales in Australia: What Buyers and Sellers Need to Know

Private treaty sales are one of Australia’s most popular ways to buy and sell property. They offer a straightforward process where buyers and sellers can negotiate privately to reach an agreement that works for both parties. Whether you’re a first-time buyer trying to land your dream home or a seasoned seller looking to maximise value, understanding private treaty sales is important. This guide breaks it down so you’ll know exactly what to expect.

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In the meantime, here’s everything you need to know about private treaty sales.

What is a Private Treaty Sale?

A private treaty sale is when a property is listed for sale at a fixed price, and buyers negotiate directly with the seller or through a real estate agent. Unlike auctions, which are fast-paced and highly competitive, private treaty sales allow for a more measured and private negotiation auction bidding process.

Why It’s Popular in Australia

Private treaty sales are popular in Australia because they’re flexible and give buyers and sellers more realistic outcome, and morecontrol over the process.

• For buyers, it’s a chance to take their time—inspect the property, sort out their finances, and negotiate terms without the pressure of an auction day. 
• For sellers, it means setting a clear asking price and waiting for the right offer, all without the stress of a ticking clock.

Benefits of Private Treaty Sales for Buyers and Sellers

Private treaty sales offer plenty of advantages for both sides of the transaction. Here’s why this approach works so well for buyers and sellers alike.

Advantages for Buyers

• Flexibility: You can inspect the property, get professional advice, and weigh your options without the pressure of auction day.
• Room to Negotiate: Private treaty sales let you negotiate the price and other terms like settlement periods and inclusions.
• Conditional Offers: Want to make your purchase contingent on financing approval or a building inspection? No problem—private treaty sales make it possible.

Advantages for Sellers

• Price Control: Set your asking price and adjust it as needed based on interest and feedback.
• Private Negotiations: Keep discussions confidential and avoid the high-stakes drama of an auction.
• More Time: Wait for the right buyer to meet your expectations without the urgency of auction deadlines.

Private treaty sales allow prospective buyers and sellers to approach the deal at their own pace, which often makes it a win-win for everyone involved.

Legal Aspects of Private Treaty Sales

The legal side of private treaty sales isn’t too difficult to understand – but there are a few important details you need to wrap your head around.

Cooling-Off Periods

Cooling-off periods protect buyers by giving them time to reconsider the purchase after signing the contract for a private treaty sale. However, these periods vary across states:

• New South Wales: 5 business days
• Victoria: 3 business days
• Queensland: 5 business days
• South Australia: 2 business days
• Western Australia: No mandatory cooling-off period
• Tasmania: No mandatory cooling-off period
• Australian Capital Territory: 5 business days
• Northern Territory: 4 business days

If your state has a cooling-off period and you decide to back out, you might need to pay a fee. This is either a small percentage of the purchase price (typically 0.25%) or a set amount to compensate the seller for the inconvenience. Make sure to double-check your contract for the exact details.

The Role of Conveyancers

Conveyancers are legal professionals crucial in making private treaty sales run smoothly. They carefully review the contract of sale to ensure it’s fair and aligns with local laws, guiding you through the legal requirements specific to your state or territory. Their job is to spot any potential issues before signing the contract, saving you from expensive headaches.

Whether buying or selling, having a trusted legal expert gives you peace of mind and ensures a hassle-free transaction. Check out our recommended list of conveyancers in Sydney, Melbourne and Brisbane to find a qualified legal expert near you.

Private Treaty vs. Auction: Key Differences

Choosing between a private treaty sale and an auction depends on your goals, the market conditions, and how much flexibility you need. Here’s how the two stack up:

Auctions

Auctions—where buyers bid publicly, and the next highest bidder to offer above the seller’s reserve price wins—are fast-paced. The competition is fierce, and the sale is final once the hammer falls. There’s no cooling-off period, and buyers must have their finances sorted beforehand. It’s a great option in a hot market with plenty of buyer demand, often leading to higher prices. But the pressure can be intense, and there’s little room for negotiation on terms.

Private treaty sales

Unlike auctions, private treaty sales are all about flexibility. Buyers and sellers can negotiate in their own time, and buyers can include conditions like securing finance or arranging pest inspections. This approach works well in markets where buyers need time to weigh up their options or where there’s less competition. It’s a more measured bidding process, too, giving everyone a bit of breathing room to make decisions.

The right choice depends on your situation, but knowing each method’s pros and cons will help you navigate the prope

rty market confidently.

Flexibility in Private Treaty Terms

Unlike auctions, where sales are unconditional, private treaty sales allow for negotiating terms and contract conditions, making the process more adaptable.

Here are some standard terms that can be negotiated:

• Settlement periods, like 30, 60, or 90 days, can be flexible.
• Inclusions like appliances, fixtures, or fittings can be part of the sale.
• Conditions include financing approval, inspections, or a “subject to sale” clause.
• Deposit amounts and payment timelines can be negotiated.
• Early access to the property can be arranged for renovations or inspections.

Negotiation Tips for Buyers and Sellers

Negotiation is a key part of private treaty sales. These tips will help you secure the best deal, whether buying or selling.

For Buyers:

• Do Your Homework: Research similar properties in the area to understand what a fair price looks like.
• Use Inspections Strategically: Use building and pest inspection results to negotiate a better repair price.
• Understand Seller Motivation: Knowing why the seller is selling can give you an edge when making offers.
• Hire a Buyer’s Agent: A buyer’s agent can negotiate and secure the best deal on your behalf. Check out our top 10 lists for Sydney, Melbourne, and Brisbane.

For Sellers:

• Set a Strong Asking Price: A realistic price anchors negotiations and attracts serious buyers.
• Counter-offer Wisely: Be open to offers but set clear limits to protect your bottom line.
• Prepare Your Property for Sale: Fix any issues upfront to avoid giving buyers leverage during negotiations.

Common Mistakes in Private Treaty Sales

Private treaty sales offer flexibility, but mistakes can cost you time, money, or even the deal. Avoid these common pitfalls to keep the private treaty process smooth and successful.

For Buyers:

• Over-negotiating: Overly aggressive on price might mean missing out on your dream property.
• Skipping Due Diligence: Neglecting inspections or delaying financing approvals can lead to unnecessary setbacks or missed opportunities.
• Failing to Understand the Market Not researching comparable properties can result in overpaying or making unrealistic offers.
• Lack of Preparation: Preapproved finances can speed up the process and strengthen your negotiating position.

For Sellers:

• Setting an Unrealistic Price: Overpricing can scare off buyers, while underpricing may leave money on the table.
• Ignoring Market Feedback: Refusing to adjust your price or marketing strategy based on buyer interest could prolong the sale unnecessarily.
• Delaying Property Improvements: Neglecting to address obvious repairs or maintenance can give buyers leverage to negotiate a lower price.
• Poor Marketing: Skimping on high-quality photos or online listings can limit your pool of potential buyers.

Conclusion: Private Treaty Sales Are Popular for a Reason

Private treaty sales are one of Australia’s easiest and most flexible ways to buy or sell a home. They allow buyers and sellers to take their time, negotiate terms, and reach an agreement that works for both sides.

The key to a successful private treaty sale is preparation. Understanding how the process generally works, researching the market, and getting the right advice—whether it’s from a conveyancer or mortgage broker—can help things go smoothly. With a little planning and the right support, you’ll feel confident every step of the way.

Check out the top 10 list of local mortgage brokers in your area to get expert advice for your borrowing situation:

• Best Mortgage Broker Sydney
• Best Mortgage Broker Melbourne
• Best Mortgage Broker Brisbane

FAQs: Private Treaty Sales in Australia

1. What is a private treaty sale?

A private treaty sale is a method of selling property in which the seller or real estate agents set a specific asking price, and potential buyers negotiate directly with the seller or their real estate agent. This process is more flexible and private than auctions.

2. How does a private treaty sale differ from an auction sale?

Compared to an auction, in a private treaty sale:

• Negotiations are private, and buyers have time to consider their offers.
• The sale can include conditions like finance approval or inspections.
• The buyer usually benefits from a cooling-off period (varies by state).

In contrast, auctions are fast-paced, completely transparent, and public, resulting in an unconditional sale once the hammer falls.

3. What is a cooling-off period, and how does it apply to private treaty sales?

After signing a contract, a cooling-off period gives buyers breathing room to change their minds and back out of the purchase. The time frame for mandatory cooling-off periods depends on the state, but it’s usually a few business days. If you pull out during this time, you might have to pay a small fee, so it’s worth double-checking the rules in your contract.

4. Can I make a conditional offer in a private treaty sale?

Yes. Conditional offers are common in private treaty sales and may include conditions like:

• Getting final financing approval from your lender
• Passing a building and pest inspection
• Selling your existing property to free up funds.

These conditions must be agreed upon by the buyer, signed seller, and included in the sale contract.

5. How do I negotiate a higher sale price in a private treaty sale?

Negotiating a private treaty sale is all about preparation and strategy. Start by researching similar properties in the area to understand the market value, then make an offer that reflects the property’s condition and your budget. Keep communication open and be willing to counter-offer if needed. Remember, it’s not just about the final price, though—settlement periods or included fixtures can also be part of the negotiation.

6. What role does a conveyancer or solicitor play in a private treaty sale?

Conveyancers or solicitors review the sale contract, ensure compliance with state laws, and oversee the transfer of property ownership. They protect buyers and sellers from legal and financial risks – so choosing someone experienced and reliable to guide you through the process is essential.

7. Can I include specific items in the sale (e.g. furniture or appliances)?

Yes. It’s relatively rare, but in a private treaty sale, buyers and sellers can negotiate the inclusion of items such as furniture, appliances, or fixtures. These need to be agreed upon by both interested parties and clearly listed in the contract to ensure clarity.

8. What happens if I change my mind after signing the contract?

If you change your mind after signing the contract, you may still have options depending on your state’s cooling-off period. You can back out of the sale during this time, but a small fee may apply. Once the first cooling-off period begins and the period ends, withdrawing can lead to more severe legal and financial consequences, so it’s essential to be sure before committing.

9. How do I ensure I’m paying a fair price for the property?

To ensure you’re paying a fair price, research recent sales of similar properties in the area. Online tools are a great starting point for detailed market insights. Getting help from a real estate agent or a buyer’s agent can also give you an accurate opinion on the property’s worth so you feel confident in your offer.

10. What are the next steps after my offer is accepted?

Once your offer is accepted, it’s time to finalise your home loan and engage a conveyancer or solicitor to review the sale contract. Before settlement, remember to conduct a pre-settlement inspection to ensure the property is in the agreed condition. Finally, prepare for settlement—the process where ownership of property is sold and officially transferred.

“Selling via private treaty is the easiest way to negotiate for a property, just make sure that you do not offer more than you can afford, and make provisions in your calculations for interest rate and income changes.”