Methods Of Sale - Auctions
Auctions get maximum exposure for your property in a short period with a structured, intensive marketing campaign over a few weeks which is convenient but also creates a sense of urgency for buyers.
Rather than potentially placing a ceiling on what people will pay for a property, auctions allow buyers to decide what a property is worth, meaning you can be secure knowing you are getting an accurate market value. Properties listed with a price are typically negotiated and sold at a lower price point, Auction is a process designed to bring prices up.
Creating fair competition for your home can push buyers to truly consider their top price come auction day, and may result in you getting more than expected when the hammer finally comes down.
An auction sale is an unconditional sale, meaning you can sign the paperwork on auction day, a deposit is paid and you have certainty.
If your home doesn’t sell at auction, the intense interest and buyer activity generated in the lead-up to the auction means you usually have an increased chance of selling the home in a multi-offer or at a negotiated price to interested parties within a short period after the Auction. Your real estate agent will already know who is genuinely interested in the property and can deal directly with them to see if an agreement can be reached.
Auctions are fair to all parties both buyers and sellers can see exactly what is happening at the time, there is none of the “smoke and mirrors” associated with some of the other methods of sale, and this appeals to all parties involved.
Methods Of Sale - Fixed Price
This means that a property is listed with a definite price. If the property is priced correctly it will attract good interest, and in some cases have multiple offers resulting in a premium sale price. The fixed price also gives the buyer a price guideline and allows for a property search by price on
real estate websites.
However, it is easy to over- or under-price the property. With an overpriced property, buyers may discount the property without inspecting it, judging it solely on the price vs the photos or look of the home. This can effectively limit the market for that particular property.
With an under-priced property typically it will be sold quickly to one of the first people to see the property.
Methods Of Sale - Price by Negotiation (PBN)
This method of sale can be applied in the following way.
No price is advertised. Buyers make offers through the sales consultants.
The benefit of PBN is the level of market interest will help the seller gauge a fair sale price. The “no price” aspect will also attract more genuinely interested, cash-in-hand buyers. By contrast, unlike an auction there is no sale date or deadline in place so there is no urgency placed on buyers to make a buying decision. This method can sometimes cause frustration with buyers as they will typically ask “Well what price do they want then?”
Methods Of Sale - Deadline Sale or Set Date of Sale
This method of marketing creates a high profile for your property and establishes a competitive environment without having to list a price.
You also set the terms, conditions and deadline date and you will find prospective buyers become emotionally involved with your home before they consider the price they have to pay. They only have one opportunity to put forward their most competitive offer. You have the opportunity to accept, decline or continue negotiations with any interested party - it’s your choice. You’re in control of the process.
Increased enquiries and inspections are often generated by these sales methods however, that could be because it is a method favoured more for properties closer to the mid to lower price ranges.
Contact us to discuss your next move
Team Ashby sells a wide variety of properties to cater to all buyers. From off-the-plan builds, to brand new, homes and income, small homes, large homes and more. So whether you're a first home buyer, investor, downsizer/retiree or developer, we can help you.
Contact our team now https://www.gregandtrudi.co.nz/contact-us