When choosing to sell your home there are different methods you can choose from. For you to achieve the highest sale price, it is important to talk to your real estate agent about which method they believe is right for you and your property. Different properties can benefit differently from the different methods. Below we will explain the methods to help you choose what suits you best.
A private treaty sale occurs when a property is listed for sale with an asking price, the buyer makes an offer to the agent, who then presents the offer to the seller, who can then decide whether or not to accept the offer.You may either start with a set higher price and negotiate down or have a price guide of 10% price range, for example: ‘Price Guide $600,000 – $660,000. We cannot advertise the property with a price guide of more than 10%.If a property received mulitple offers it is then up to the owner to make the final decision. They may choose the highest price or the offer with the best conditions.
The Auction process is a simple strategy that works. An Auction marketing plan can be designed specifically for your property. It is commonly said that only certain properties suit the auction process. At Dowling Property Group we believe all properties suit the auction process. An Auction is an open negotiation between potential buyers and a vendor witnessed by the public. There are no blind negotiations orchestrated between closed doors or over the phone giving the vendor and buyers complete control of what price you will sell for and how much they will pay. Auctions create a sense of urgency for prospective purchasers while the fixed marketing allows them ample time to complete their own enquires and arrange finance. A reserve price must be set which means if the bidding reaches that amount or above on Auction day the property will sell. If the bidding does not reach the reserve price the Auction is ‘passed in’ and the highest bidder has the right to negotiate after the auction. The pro of bidding at auction is that there is no limit on how high the bidding can go.
EXPRESSIONS OF INTEREST
Sale by Expressions Of interest (EOI) is when you invite buyers to submit an offer to purchase your property by a specified time and date. Each potential purchaser puts forward their best and final offer (in writing). Generally your property will be on the market for anywhere from 2 to 6 weeks to enable us to promote your property effectively and to ensure ample time is given for buyers to look through the home, finalise their finance and determine the price they are willing to pay. Expressions of interest can be a great way to market a property that is hard to price (a unique property etc) as it allows the market to give an indication of what they think the property is worth. If the offers submitted are not satisfactory by the end of the expressions of interest period a price can then be advertised. Expressions of interest provide you with the benefits of a private treaty sale but with the urgency of an auction without the potential stress.
Similar to an expressions of interest campaign but there is no time frame. Often agents will use a PREVIEW campaign for the first week or two on the market to gauge what prospective purchasers think the property is worth and how much interest there is in the property. A price can then be advertised. All methods of sale have their own pros and cons, it is up to the seller and the agent to decide what they think is the best way to market each individual property.