Real Estate Selling Methods – (What is the best method when selling my property?)
Each sale method has benefits and each property requires different consideration. Recent market activity and conditions also need to be taken into account. There is simply not a one size fits all.
The most common sale methods used in real estate through Canterbury and Christchurch are: Auction, deadline sales (deadline treaty), by negotiation and price marketing.
So what benefits to each of these real estate sale methods offer…
If successful most auctions result in an unconditional sale at the time – therefore a definite result is reached at the time
Competition can be created at auctions resulting in buyers bidding against each other. Resulting in potentially a higher sale price.
Although great prices may be achieved through competition… Not all potential buyers may show interest in an auction. It is a required taste and there is price uncertainty.
This method allows for offers to be submitted with conditions which can result in a wider eligible buyer pool. For example a passive buyer may not have prepared finance to purchase your home unconditionally at auction but with conditional offers they have the opportunity to complete due diligence and acquire finance where possible.
On the ‘deadline date’ buyers are supposed to produce what is perceived as their best offer as they may be submitting this offer with competing offers.
Again good prices can be achieved as ‘buyers are to submit what is supposed to be their best offer but buyers may be opposed and go to another property for sale due to the uncertainty.
A good way to really test the market by asking the buyers where they see the value of this property.
Brilliant when it is difficult to specifically value a property. Selling by negotiation may also encourage a vast pool of buyers with different expectations.
This is good in the fact that it may appeal to a wider pool of buyers although again there is uncertainty for buyers on defined price expectations.
This method is transparent and because of this it may arguably attract the most buyers because they will be aware that this home is within the price bracket.
Price marketing also may attract the most eligible and serious buyers as price expectations are not mistaken and the sale method does not deter them unlike others.
Price marketing may limit the upper dollar a seller could achieve in certain situations but the transparency can also derive a bigger pool of potential purchasers who may still end up competing with one another to push prices to a possible maximum.
Our sales agents do not favour one particular method, as we believe one size does not fit all. We like to take into account the owners preferences, situation, property and the market conditions to help determine what will be the best method.
For more information or consideration on your property please contact below: