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Methods of Sale

At a Glance

Fixed Price                                                                                                                                                                                                                                                                                                                                                                                                

  •  Priced correctly, the property will attract a lot of interest
  •  May make it easier for buyers to determine if the property is within their reach
  • Gives the buyer a price guideline and allows for a property search by price on real estate websites
  •  Buyers set out to pay less than asking price
  •  Pricing limits the amount home seller will achieve
  •  If priced too high buyers will offer on other properties
  •  Property can become "stale" and price reductions may be necessary 

 

Price by Negotiation

  • You do not overprice or undersell the property - the market determines the value
  • The 'no price' aspect will attract more genuinely interested buyers
  • The level of market interest will help the seller gauge a fair sale price
  • The market feedback will assist in pricing the property should the marketing method be changed if not sold in the first few weeks
  • No urgency placed on buyers to make a buying decision

 

Auction

  • Widespread marketing
  • Set date forces buyer to make a decision
  • Offers on the day are cash/unconditional
  • Owner sets the terms of sale (settlement date etc.)
  • No price that buyers can object to and try to beat down
  • Buyer competition forces price upwards
  • Attracts buyers over a wider price range
  • Buyers decide on suitability of property rather than price
  • Company focused on achieving best price
  • Property compared to others on its features rather than asking price
  • Short intensive marketing with high impact
  • Has further marketing opportunities if not sold on day
  • Structured plan in place rather than waiting for buyer 

 

Tender

  • Widespread marketing
  • Sets a specific time frame—buyers must decide
  • Ideal if property needs "investigation" by buyers
  • Prices offered remain private
  • Owners can choose which buyer to work with
  • Offers may contain buyer "conditions"
  • May encourage lower offers
  • No buyer competition as in auctions 

 

Harcourts Fact