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RAMS NEWS

Property Selling Decisions

Every selling situation is unique and requires a selling plan tailored to your needs. Key initial decisions are:

Who should sell your property?

Which selling method should you use?

Who should sell your property?

When selling your property through a real estate agent you can choose to either list your property with as many agents you wish (known as a general agency listing) or with just one agent (a sole or exclusive agency listing). Either agency arrangement must be granted in writing.

The main benefit of a sole agency for you, the vendor, arises from the obligation it places on the salesperson to make your sale happen. The salesperson is obliged to work hard, always in close communication with you. A sole agency also offers you a greater degree of discretion and privacy during the sale process. The selling agency and their staff are the only people able to bring prospective purchasers through your property at times that are convenient for you.

Which selling method should you use?


Different approaches to selling your property offer different benefits. Your Rams Real Estate salesperson can help you decide the approach best suited to your property, your situation and requirements, and the current market conditions influencing the value of your property.

Your options include:

Auction
Tender
Deadline Private Treaty (also known as Deadline Sale)
Fixed Price

Auction

Auction is a very effective selling method and a powerful demonstration of your determination to sell. Most property types are suited to auction selling and the perception that auctions are reserved for desperate or unusual circumstances has long since passed. Auction selling places a time limit on sale negotiations but still allows you to consider offers prior to the auction.

Advantages:

  • At auction, prospective purchasers compete with each other to establish the true market value of your property. An auction will also realise any particular premium that exists in the current market for your type of property.
  • Prospective buyers cannot compare your property with others on the market because they do not know your price expectations.
  • Bidders are offering to buy on terms and conditions determined entirely by you, the vendor.
  • Your protection is the reserve price. Your Rams Real Estate salesperson will set this with you once the likely bidding strength has been assessed.
  • You determine the extent to which the auction is advertised, thereby retaining control of the cost of the marketing programme.
  • If a property does not sell at auction, the auction campaign will almost certainly identify the most likely purchaser with whom you can enter into further negotiations after the auction.

Tender

Sale by tender is another effective form of "no price" real estate marketing - where bidders submit their offers in sealed envelopes.

Advantages:

  • Prospective buyers cannot compare your property with others on the market because they do not know your price expectations nor can they offer the objection that your property is overpriced.
  • Tenderers compete with each other and establish beyond doubt the true market value of your property; a tender will also realise any particular premium that exists in the current market for your type of property.
  • It is not uncommon for the highest tender to be significantly above the other tenders.
  • You need not necessarily accept the highest tender but it often forms the basis for ongoing negotiations after the tender closes.
  • You determine the extent to which the tender is advertised, thereby retaining control of the cost of the marketing programme.

Sale by Deadline Private Treaty

Sale by Deadline Private Treaty sees prospective buyers competing to purchase a property within a defined timeline but without the formalities of a tender. Confidential offers are invited by a specified time, usually in a sealed envelope.

Advantages:

  • Buyers compete against one another in much the same way as in a tender. This places some urgency on buyers and can also work in the vendors favour to establish a premium price for a property.
  • Prospective buyers cannot compare your property with others on the market because they do not know your price expectations, nor can they offer the objection that your property is overpriced.
  • Buyers are able to include conditional clauses in their offers such as finance approval or the sale of another property, opening up the property to a greater range of prospective purchasers. The salesperson will advise the buyer of conditions that suit the vendor best.
  • You need not necessarily accept the highest offer but it often forms the basis for ongoing negotiations after the deadline has passed.
  • You, the vendor, determine the extent to which your property is advertised, thereby retaining control of the cost of the marketing programme.

Sale by Fixed Price

Sale by fixed price is the traditional method of selling a property. Here you make your sale price expectations very clear to all prospective purchasers. Because of this it is absolutely critical your asking price recognises the current market in your locality for your type of property. Your Rams Real Estate salesperson is well qualified to assist in this.

Advantages:

  • Sale by fixed price removes any guesswork on the part of buyers and attracts price-conscious buyers seeking a property in your price bracket.
  • You can choose to set a deadline or leave the selling date open. Where no deadline is set prospective purchasers will not have pressure on them to act (in contrast with other sale methods). This may be preferable where the buying decision is complex, but it also means the sale can take longer to finalise.

Click here to contact Rams Real Estate for further information.

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