At Harcourts Tauranga, we understand that there is a lot more to selling your home than simply placing a “For Sale” sign in front of your property.
Below, we take a critical look at the three major marketing strategies used in the sale of property – i.e. sale by Auction, Exclusive Agency or Tender.
SALE BY AUCTION
The sale of property by auction is widely recognised as the most effective and successful method of achieving a premium price for your property in the shortest possible time. This is achieved by the following:
• An Auction Advertising Program is an impressive demonstration of your commitment to sell, with a targeted marketing campaign intended to saturate specific buyers in the market.
• The Conditions of Sale will be on your terms and conditions.
• An auction date creates a sense of urgency, yet still allows purchasers ample time to complete their own enquiries and arrange finance. On the actual day of the auction each potential purchaser can clearly see their competition, which builds competitive bidding and ultimately exhausts market demand – resulting in a premium price.
At the conclusion of a successful auction, the purchaser is required to pay a 10% deposit and to sign the Conditions of Sale to complete the purchase.
SALE BY EXCLUSIVE AGENCY
Your property would be placed in our hands as exclusive agents for an agreed period of time. As your exclusive agent we are committed to actively market the property for sale.
Under this arrangement the property will be promoted to the market with a predetermined asking price, however the terms of the final contract can be changed as a consequence of negotiations with the buyer.
You may consider this method to be suitable if you are not in a hurry to sell and are prepared to wait until a buyer comes along who is willing to pay the asking price. This being the case, you should consider the following:
• Placing a price on your home guarantees that the amount set will be the maximum price you will be likely to achieve. People often offer less, but rarely more!
• Purchasers sometimes act with a lack of urgency when a property is listed for sale with a price, as many properties are marketed this way.
SALE BY TENDER
The marketing concept for this strategy is similar to that of an Auction, except that both you and the purchaser can achieve a sale without the loss of confidentiality associated with a Public Auction. That is, the price for the property is not disclosed.
The purchaser must complete a form of Tender and submit this together with a preliminary deposit to the agent before the determined closing date. As the Seller, you may accept whichever tender you wish, which may not necessarily be the highest Tender. Once you have accepted the Tender, neither you as the seller, nor the purchaser may withdraw from the sale.
A possible disadvantage with this method is that a purchaser may impose conditions that could be subject to considerable negotiation prior to the sale being effected.
