WHAT ARE THE SELLING OPTIONS?
As a SELLER there are many different ways to sell a property.
Some agents have even re-packaged some familiar terms…
…to make them sound unique or special.
As the SELLER, you have TWO (2) MAIN options for marketing your property:
- Marketing with a price OR
- Marketing without a price.
- Some campaigns start with one or the other option and change once or more over the duration of the listing.
- All of the methods below are some sort of a variation of 2 main ways to sell (above)
- & are called many things from any of the following list;
(Big deep breath…)
- Private treaty
- Coming Soon/ market launch date
- Offers/ Offers Over $/ Offers From / Offers Invited/ Considering Offers
- Call for details/ Contact agent
- POA (Price on application)
- FIXED DATE SATE or SET DATE SALE
- Will be sold!
- From $ price
- Price range
- Expressions of interest
- Evolution Sale
- Open Negotiation
- Market Buy
- Online bids or Online auction
- Best bid or best bid by/ Current Bid is $
- OTHER??? (We have probably missed some)
…it is a big enough list to CONFUSE anyone!
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 OR the seller is very clear as to the price they want or expect.
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 specific or precise price guidance. (The may receive a broad range of possible prices or a high and low range if they request it).
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).
There is a proliferation of various online platforms now which are really an evolution of an online auction or offer management strategy which is partly auction and partly expressions of interest. It is still no price marketing.
1) Auction involves an extensive marketing campaign over a three to four week time-frame.
- The seller sets a reserve price, which totally protects the seller from underselling. The reserve can be set anytime from listing to just before the auction. It is in writing, and it the lowest price the seller is willing to sell for. This figure or price is not advertised to the public.
- The seller can sell anytime or accept any offer anytime prior to the auction.
- With an auction, there are three ways (phases) the property can sell. Interested parties (buyers) 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, on auction day under the conditions of Auction, to secure the property.
If the property does not sell on auction day, it normally converts to one of the other methods of sale shortly after. (E.g an asking price typically). Buyers can then submit offers traditionally, and the agent will follow up all buyers that engaged the property during the campaign as well as look for new buyers as required.
- This method is used extensively in estate sales, mortgagee sales, where high demand is evident and/or the value is difficult to determine OR the property is particularly unique, or appealing and the possibility or an above market or premium price may be achieved through competitive bids.
- Typically, properties that use the auction method of sale achieve a sales in about half the normal time for private treaty as the campaign allows the seller to see market value quickly (On the front lawn of the property) live in real time. The same can be said of the buyers.
- Auction is a great method for sellers that are totally committed to the outcome as a huge amount of resources is applied in a focused burst.
2) 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.
- The closing date in attempting to create urgency in buyers.
- 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.
- Normally, after the closing date, the date is reset or the method of sales changes to private treaty, or “CONTACT AGENT” or “OFFERS” or something like that.
This method is used where high demand is evident and/or value is difficult to determine.
3) 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.
- Ideally, the seller and agent want enquiry and buyer/ market feedback. This may be used a lot early in a marketing campaign.
- It is a way of gauging market interest without harming the property by coming onto the market priced too optimistically, and then having to adjust/ reduce the price a month later.
WHICH METHOD IS BEST?
All methods of sale have some merits…
ANSWER: It depends on…What is important to you?
- All have SOME factors which repel some buyers
- Or have the potential to affect the final selling price
- ALSO, I believe more in the ART than the science. In other words, it depends on who your agent is. A great campaign strategy in the wrong hands is still a poorly executed campaign.
ALSO PLEASE REMEMBER:
- Evolution Realty and Ian Barnes are across ALL MAJOR METHODS OF SALE.
- There is not a one size fits all.
- We structure based on what is best for you and YOUR PROPERTY.
- You can have WHATEVER method of sale you feel MOST comfortable with.
ULTIMATELY- the method of sale…
- Needs to reflect what YOU as as seller…
- & are comfortable with and what suits your needs best.
I suggest a detailed analysis and discussion…
- By your Agent is necessary and potentially profitable…
- BEFORE listing your property for sale.
REMEMBER:- The adverse consequences of getting it wrong…
- Can be very costly.
- Time, money and stress.
For more information on the above:
Please feel free to call me.
- ask me to meet in person or discuss…
Please drop me a line if you require any real estate assistance. (Email, SMS, call or drop in). Thank you.
P.S. I am ready, willing and able to assist with your real estate needs when you are ready!
P.P.S. If you don’t already have a copy of my book “How to sell your home for top dollar in any market” click on the link.