The method of sale you choose can have a strong influence on the final price, terms, and settlement date of your property. At Bayleys we will provide you with expert advice on your property, taking in a range of considerations. Before you decide which sales method will be most beneficial for you, it is worth considering all the options.
Priced method
The pricing method is exactly as it sounds. After reviewing all the relevant financial data which the sales consultant will have diligently passed on, you as the vendor determine a price that you would like to sell for. That price is presented to the market. Buyers come back with their offer on that price – and so the offer and counter offer process begins.
This method of sale often pitches the vendor against the buyer - generally inviting the buyer to negotiate downwards of the asking price and the vendor to negotiate upwards of the offering price.
Advantages of the pricing method.
- Being totally transparent, it allows potential buyers to know what price level you want.
- It allows for conditional and unconditional buyers to offer.
- You can achieve a very quick sale if the market perceives your pricing to be below its valuation of the property.
Disadvantages of the pricing method.
- Determining what is the right price. If you price the property too high, no-one will look at it as they think you are unrealistic. If you price it too low you undersell your return.
- Buyers tend to focus on the price alone, rather than the features and benefits of your home.
- There is no time frame associated with a price, so it’s hard to create urgency with buyers.
- It allows for conditional offers where the buyer can negotiate the terms and the price.
- As an owner, it can leave you with the perplexing question: ‘Is this really the best offer I’m likely to receive?’
Auction
- The vendor sets the terms of the sale – such as the settlement date, and deposit required.
- The sale is unconditional and binding on the purchaser.
- A deposit is paid at the time of the sale.
- The only method of sale that creates open competition between buyers.
- Due to open competition the price is driven up by competing buyers.
- The vendor retains control of the process by setting a reserve price which must be achieved before the property can be sold.
Tender
- Allows for buyers to remain anonymous.
- Buyers may submit conditional offers or include trade offers.
- Allows the vendor to deal with a preferred party.
- Normally a deposit is submitted with an offer.
- Suits properties that require in depth investigation and due-diligence.