Method of Sale
Pick the Path that’s best for you
Method of sale is the outlined process in which you will define how & by when you will accept offers for your property. There is no right or wrong method & in most cases no better or worse method.
Agents will often refer to themselves as specialists of a particular method, which is an indication that they are more familiar with a particular Method of Sale.
Buyers who like the property will submit an offer regardless of the Method of Sale.
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We can adopt the “FOR SALE” strategy. This strategy ensures there is no ceiling on the sale price and encourages buyers to put forward offers in line with where they see the value of the property… if the buyers offer a price too low, we can then guide them upwards on price.
Removing the advertised price also encourages buyers to interact with me more... allowing for in-depth qualifying discussions ahead of any negotiations.
The other option for Private Treaty is to immediately advertise the property with an “Offers Over Strategy”. This strategy helps guide buyers a little further by including a price in the title. The “offers over” part ensures there is no ceiling on the price but helps avoid offers from being too far below expectations (there are always low offers for a property).
ALTERNATIVELY,
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Auctions create a competitive environment that can drive up the final sale price, especially when demand is high. They also offer sellers the advantage of setting their own terms and conditions, potentially leading to a faster sale and greater control over the process. Auctions campaigns are typically unconditional contracts also avoiding potential terminations of the contract.
It is important to note that an Auction campaign doesn't mean we need to sell on Auction day, across the couple of weeks prior, I will have gathered enough information to know where the interest is sitting so that we can make an informed decision prior to auction. Alternatively, we can pass the property in at Auction and run a Private Treaty campaign. We like to do our Auctions at the property they are buying so that emotions remain tied to the property.
ALTERNATIVELY,
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Buyers must submit a response to the seller's disclosed tender price, usually before a set deadline. They then compete against each other by submitting offers.
All offers are confidential, making the process similar to a silent auction. Properties are usually sold to the highest bidder.
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I would suggest having a slightly lower background price (This price is hidden from buyers; they cannot see what the background price is) compared to our price expectations. A background price is how properties are organised/ordered on property portals like realestate.com.au.
The reason I suggest a lower background price is that we want more buyers to engage with the property. I often see that buyers searching with a budget slightly short of what we are asking for the property come along to inspect and see that for just a bit more money, they can get a much better property. From there, buyers will often reassess their borrowing power to see if they can afford the better product.
Background prices increase in intervals of $50,000 until $1,000,000 where the intervals become $100,000. Realestate.com.au takes the higher number between the advertised and background price when sorting & filtering properties.
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I strongly suggest this process be avoided at all costs! I have now witnessed close to 50 of these campaigns and I have never seen a successful buyer pay any more than $10,000 above the next best offer.
The buyer who wants the property the most will always pay the most, the problem with Marketbuy is that all the offers for the property can be seen by all the buyers they know exactly what they have to pay to secure the property. I like to get buyers to pay as much as they are prepared to pay, for the buyer who wants the property the most this is often significantly higher than the second best offer.
I recently had a similar property in Toowong where there was a $50,000 difference between the best and second best offer...if they had known where the other offers were, they wouldn’t have offered what they did. In this case, the buyer is extremely happy and the seller greatly appreciates the final outcome.
How this also differs from an Auction is that the buyers aren't in an environment where they see each other and they agent/auctioneer cant negotiate in-person.