For Sale by Private Treaty
This method is associated with a fixed price and is usually used on properties that a price can be determined through comparable sales and a predicted market response.
You must be careful with the fixed price method not to over price or under price your property. If you over price the home, it will sit on the market for a considerable amount of time, resulting in a loss in market momentum as well as potentially, a great end result, as the market will not respond to the listed price. If you under price your home, it will also cost you money as the property is capped by the stated price and rarely will the market pay over that.
Marketing Tip: A marketing campaign can be used with this method but it isn’t as powerful, as potential purchasers tend to judge the property by the stated price on the advertisement, sometimes even before visiting the property.
Offering a property for sale by deadline sale provides many advantages that are common to selling through auction, however there are some aspects that differentiate this method and these include, but are not limited to:
· The offers are private to the vendors.
· For sale by deadline sale enables a sale to take place at the close-off time, regardless of the number of parties interested.
· Premium market value can be established even if the second to highest offer is substantially lower than the highest.
· Purchasers are able to place a conditional offer, however this is not always recommended, as unconditional offers are given preference.
· This method of selling provides the market with a closing date to work toward and has a definitive direction.
It would be fair to say that a deadline sale for your property, can be more advantageous in a market that is not quite so HOT!
Marketing Tip: As with auctions, a three to four week marketing campaign has proven to be an effective period of time when marketing a property. The price guide is left open and potential purchasers are drawn to the property through the emotion of advertising, not judging it by the price.
Many people are apprehensive about auctioning their property but it can be a very powerful marketing tool particularly if the property is likely to be in high demand or is unusual in some way and therefore difficult to price.
The benefits associated with selling your property through auction include but are not limited to:
· Auction with its concentrated advertising campaign, ensures that your property is exposed to the market as widely as possible.
· Auction stimulates competition between buyers, and ensures the best price.
· Auction encourages buyers to make a decision before Auction Day. It forces them to act, arrange finance and attend the Auction Room or site on the day. The hesitant buyer, playing a waiting game, is forced to bid or miss out.
· Auction ensures that your property is serviced by an experienced representative who will devote a major part of their time and energy throughout the auction campaign towards the professional marketing of your property. Compare this with the typical private treaty situation, where each representative may be obliged to attempt to service up to 50 or more properties.
· Auction prevents recrimination between trustees, executors and parties involved in deceased estates, overseas/interstate transfers, divorced or forced sales. You have positive proof that the sale price was the highest obtainable in the market.
· Auction makes a binding contract on the fall of the hammer. It’s so different from offering your property for sale by private treaty, when weeks of negotiations may result in a much lower price or the complete breakdown of the sale. With auction you sell on your terms without the buyer introducing unwanted conditions.
· Auction simplifies inspection arrangements. Usually two inspection periods are arranged each week of the auction campaign.
· Auction helps you to plan for the future in the knowledge that you can obtain the highest price the market is prepared to pay.
· Auction enables you to find out the price which the market puts on your property. Compare this with private treaty where your price may be so high that no one will make an offer, or it could be so low that you run the risk of underselling the property.
· Auction protects you if the market is weak. The bidding may be below your reserve price, but it will usually establish an adequate price level as a valid basis for subsequent negotiations.
You can be assured that your auction will be conducted to the highest standard with the utmost professionalism and discretion.
Marketing Tip: An auction is usually a three to four week marketing campaign with no set price publicised for the property. During this time, an aggressive marketing campaign will be conducted with the objective of generating a flood of buyers in a short period of time. For the right property, an auction can generate an early sale at a high price. The price guide is left open and potential purchasers are drawn to the property through the emotion of advertising, not judging it by the price.