A SELECTED DATE & TIME FOR PROPERTY TO BE SOLD BY AUCTION
Selling via Auction has similarities to the Exclusive Agency method as it selects just one agency to manage and co-ordinate the marketing &
auction process of the property. One of the most beneficial aspects of auctions for owners is that genuine buyers will either place an offer
prior to the auction, during or after the auction, which creates 3 separate opportunities for genuine buyers to purchase your property.
The sale price may be higher than expected if adequate advertising expenditure has been invested to market the property as the more genuine buyers attending your auction the greater the sense of competition is created within the competing buyers, however some astute buyers and opportunistic investors may wait and watch the auction and see what the market price is indicating by fellow bidders and make an offer after the auction if the property is passed in.
Another benefit to the auction process is generally there are no conditions of sale, which means if it sells at auction, it’s sold!!!
In conclusion the lower the asking price of property the more buyer interest is shown in purchasing, this well documented fact illustrates that when there is no price such as in auctions, buyers will anticipate with their own sense of value for money and attend for an opportunistic purchase, but
genuine buyers attending and bidding will raise the perception of value due to the high level of rival bidding interest.
Summary:
- Pre- Determined Date & Time for Sale by Auction
- Identifies Genuine Buyers
- Possibility of Before, During and After Auction Negotiations & Sale
- No 5 Day Cooling off Period Applies
- Usually No (Subject To Special Conditions) such as Pest & Building Reports
- Fixed Advertising & Marketing Costs
PRIVATE TREATY METHOD TO SELL YOUR PROPERTY
This is one of the most general methods of sale between private property owners and agencies alike, the private treaty or exclusive agency method is best preferred by agents because it defines the selected agencies role and responsibility. It allows the exclusive agency to create a seamless marketing and advertising campaign that promotes a professional image to prospective buyers.
Retained price integrity, reliable communication with accurate reporting and accountability, coupled with a strong negotiating position are all advantages of this method of sale. Genuine buyers also appreciate a sense of confidence in communicating with one point of contact.
This method also permits just one agent’s sign to be installed in a prominent position on your property, otherwise if buyers see multiple signs they may assume the property is either overpriced or there is some undisclosed problem with the property preventing an expedient sale.
Summary:
- Increases the owner’s negotiating position for the sale price
- Only one single point of responsibility & accountability
- Continuity with presentations, interpretations & opinions
- Maximum advertising and marketing expenditure by the listing agency
- Control, accountability and continuity with prospective buyers
- Increases the opportunity of conjunctional arrangements with other agencies
