Method of sale, it’s all about the buyer.
When choosing what method to use when selling your home it really is time for the seller to STOP being romantic about the situation. I am sorry to tell all the sellers out there, it has nothing to do with you and everything to do with the buyers!
Not all methods of sale are created equal, especially when you consider the change in buyer behaviour, in fact, some methods of sale deter buyers rather than attract.
- Fixed price – The price is very much set with the seller in mind and gives very little thought to the journey the buyer goes through. The price is the seller’s dream price, however, they are usually willing to negotiate down from that level.
- By negotiation – Most buyers like to have a price indication, when they are checking your property profile their eyes are scanning for numbers and pictures. By negotiation is often perceived as ‘overpriced’ and therefore disregarded.
- Auction – Works well in areas with high volumes of buyers and not so much in the less populated areas, however, Auction does require you to be cash unconditional when you bid at Auction, which means you will have to undertake all due diligence prior to purchasing, possibly taking on cost of building inspections, lawyers cost, Lim reports and more without knowing if you will be able to secure the property. Auction excludes all conditional buyers, therefore, leaving you with a much smaller buyer pool.
- Tender/deadline sale – Does not have a price indication, you often have to wait for a specific date to make your offer. Most buyers worry they will end up paying much more than they had to.
The one that stands out.
- Offer’s over – If deployed correctly the offers over price will be constructed around what will attract most buyers. Buyers don’t need to wait for a set date to make an offer, they have a clear price indication and they can make conditional offers if they wish. If this method of sale is deployed correctly the results can be staggering, check out our 51 Tudor Street case study.
Choosing the correct method of sale is, without a doubt, one of the most important decisions you will make prior to launching your property to the market. If you are unsure, make sure you seek the advice of an experienced professional.