METHOD OF SALE OPTIONS
As the owner, you have two options for marketing your property:
- Marketing with a price OR
- Marketing without a price
- Marketing with a price:- This is known as Private Treaty. This is the most common method of sale and involves setting an asking price, “from” price or price range. Once the most appropriate method has been decided the property is exposed to the market and Buyers are invited to submit offers to purchase. This is most often the best option where there is significant sales evidence to justify a price and/or demand is not extremely high.
2. Marketing without a price:- Marketing without a price allows potential buyers to focus on the property, rather than the price and determine where they see value, without being provided with price guidance.
There are three common methods of marketing without a price:
- Tender or Expressions of Interest (with a closing date)
- Expressions of interest (without a closing date)
- Auction involves an extensive marketing campaign over a three to four week timeframe. Interested parties may submit offers prior to the Auction day and the Seller reserves the right to accept the offer and end the Auction campaign. In the event that this does not occur, potential Buyers bid in competition, under the conditions of Auction, to secure the property. This method is used extensively in estate sales, mortgagee sales, where high demand is evident and/or the value is difficult to determine.
- Tender or Expressions of Interest (with a closing date) also involves an extensive marketing campaign over a three to four week period. Similar to Auction no price guidance is given and the Seller reserves the right to accept an offer prior to the closing date. In the event that this does not occur, all offers are presented on the closing date and the Seller may deal with each offer as they would in Private Treaty. This method is used where high demand is evident and/or value is difficult to determine.
- Expressions of Interest (without a closing date) is normally utilised to provide the Seller with price feedback from Buyers prior to applying a price and proceeding by Private Treaty. This method is most often used where either the value is difficult to determine or the Sellers are optimistic about the value of their property in comparison to sales evidence.
I hope that you have found this article helpful. They are the views of Ian Barnes and Evolution Realty and are intended to be informational and helpful only. They are intended for the clients or prospective client of Evolution Realty. Thank you.
If you would like any assistance with buying, selling or property management please call the friendly team at Evolution Realty now and it would be our pleasure to assist you.