In Sydney property sales, private treaty is like fishing with one rod for a single ideal buyer, while auction casts a wider net to attract multiple serious buyers and create competition. The auction approach lets you discard unsuitable offers while leveraging competing bidders to drive up the final price.
Chapters
I'm very lucky to have a great mentor, and one thing that he always used to talk about particularly was this thing called the Big Net Theory. He certainly came up with it himself, and I'm going to trust him on that. But the idea of the Big Net Theory is the difference between a private treaty campaign and an auction campaign. So a private treaty campaign will be a fisherman in a boat with one rod, one line, one hook, one worm, and they'll cast that rod out as far as they can. And what they're looking for is, of course, to one day come along and the biggest possible fish to bite that hook to wheel it in to then provide that price to the owner. That's the general consensus of a private treaty campaign. Whereas an auction campaign takes things a little bit differently. And what an auction campaign I think does really, really well is it's the same fishermen in the same boat in the same expanse of water, but with a really, really good quality targeted sort of heavy marketing campaign. The fisherman puts down the rod, they pick up a big massive net, and they toss that net out as far as they can and they drag it in. Now in that net there's going to be all sorts of fish. There's going to be small fish, medium fish, and hopefully some larger fish that are going to allow you to get that sale done for the owner. But as responsible fishermen, we always get rid of the smaller fish, and we sort of notify those particular buyers that this may not, likely won't, be the asset that they're looking for. But what we do is we utilize the medium and the larger fish to work together to try and get that premium price for the owner. So that's all the big net theory is, and I think it's a great theory when it comes to the difference between a private treaty campaign and an auction campaign.
