With market conditions constantly changing and no two properties ever the same there’s never one ‘tried and true’ method of selling. The type of property you wish to sell and the timeframe in which you want to do it ultimately will determine the most appropriate and effective marketing strategy.
Anahita will work with you to achieve the very best price for your property in the current market no matter what it takes.
While the result should always be what’s best for you, that outcome can be achieved in a number of different ways.
Selling by Auction is the very best means of achieving a premium and fair market value for a property within a specified time is Auction. The deadline for the sale creates a sense of urgency among buyers and sales consultants alike.
The word “auction” derives from the Latin word “augere” which means “to increase”. Dating back to Roman times, auction is one of the oldest methods of selling and yet today it is the most advanced method of marketing real estate.
Auction involves a short, sharp and intensive marketing campaign of a property without a price. This is to test the market to see what buyers, in a competitive situation, are prepared to pay to become the new owners of that property.
Marketing with a price limits what a keen buyer may pay. Once a listing price has been established for a property, a ceiling has been placed on what a buyer expects to pay for it. Auction, on the other hand, offers a real opportunity to get more for a property than the seller might expect.
Our objective is for the seller to have the highest price possible offered for their property by the end of the auction campaign.
The three stages to auction
Auction is one of the few methods of sale where you get, not one, but three opportunities to sell your property at three different stages of the process.
In the lead-up period high profile auction marketing will highlight the property, producing the greatest exposure during the period when enquiries are likely to be at the highest level.
The auction itself is the shortest part of the process but it is the best opportunity to sell during competitive bidding in an open arena.
Post-auction period – some people believe that if the property does not sell on the auction day then the auction system has failed. This is not true. Stage three provides opportunity to negotiate with those who may need to sell another property or arrange finance before they can commit themselves unconditionally.
Through auction, buyers are prompted to pay their top price by:
- The deadline.
- Confirmation of value and desirability by other buyers/bidders.
- Fear of loss to a stronger or keener buyer/bidder.
There are no terms and conditions to be met after the sale when the hammer falls, the property is SOLD.
2. Price By Negotiation
This method of sale can be applied in any of these three ways:
- No price is advertised, like an auction, but without an auction plan. Buyers make offers through the sales consultant, as in exclusive agencies.
- A minimum price may be advertised. Offers above this minimum price are considered by the seller.
- A price range may be advertised, e.g. $170,000 -$195,000. Offers within this price band are considered by the seller.
Disadvantages of PBN
- Unlike auction and tender there is no sale date or deadline in place so there is no urgency placed on buyers to make a buying decision.
- There is no open competition amongst the buyers to help drive the price up.
- Offers are often conditional.
A tender works in a similar way to the auction system, except there is no public auction day. A tender has no open transparent bidding and is like a secret Auction. Tenders or offers close at a specific time on a specific date but offers can have conditions attached to it.
4. Fixed Price
This means that a property is listed with a definite price.
- It is easier to over or under price the property.
- Buyers may discount the property without inspecting it, by judging it solely on the price. This can effectively limit the market for that property.
- Generally when a property is priced buyers will try to negotiate the price down as a result the best possible price might not be achieved.
The Choice is Yours
Anahita will offer you her advise based on her knowledge and expertise. Ultimately whichever method you choose rest assured that Anahita will be work tirelessly to obtain the best result for you .