Date: 21st Jul 2020

An overview of the range of methods you can use to sell your property

This comprehensive guide details each of the options you have available to sell your property. Speak with your Tremains sales consultant for more information about choosing the method that’s right for you.

Auction

Selling a property at auction is an open process where buyers bid against each other to purchase the property. You set a reserve price before the auction and once this price is reached, the highest bidder becomes the successful buyer.

The benefits of selling at auction:

• All bidders are cash buyers – there are no conditions on the offers and sold means sold
• It creates a sense of urgency as there is a fixed period of time marketing your property
• Competition is heightened which can lead to a premium price
• You can still consider offers before the auction if your auction terms and conditions allow for it
• You are in control – you set a reserve price which is the lowest price you are willing to accept
• Your sales consultant will know how many interested parties will be in the room as buyers must register
• There is no ceiling on the price – no restrictions by advertising a price
• Great for properties that have a special something about them or where they are difficult to value
• You can’t sell a secret so you will still need your agent to build an effective marketing campaign and run regular open homes

How the bidding process works

Once the bidding passes the reserve price, your property is on the market and will be sold to the highest bidder.

• If the bidding does not reach the reserve price, the auctioneer will pause the auction and discuss with you what you would like to do next
• If bidding is close to reserve price, but not quite there, you can agree to put the property on the market, in which case the highest price buys the property; or
• You can advise the auctioneer that you will not sell at that price and the property gets “passed in.” The auctioneer will let people know the auction is finished because the reserve price has not been reached
• At Tremains, we suggest that you negotiate with the person who made the highest bid. This still gives you the opportunity to sell the property on the day. Note that the offer may not be an unconditional one
• If the property is not sold, your salesperson will discuss other options for marketing your property

Tender

A tender is a method where buyers submit confidential written offers for your property by a set date. Offers can be accepted prior to the advertised close date, but this must be made clear in the advertising. There is no reserve price but there may be a price guide.

The benefits of selling by tender:

• It creates a sense of urgency as there is a fixed period of time marketing the property
• Competition is heightened which can lead to a premium price
• All offers are confidential
• You have the option of accepting an offer before the tender date as long as this is clear in the marketing material
• You have time to consider the offers before you make a decision
• There is no ceiling on the price – no restrictions by advertising a price
• Great for properties that have a special something about them or where they are difficult to value

An offer will be drawn up on tender documents provided by you or your solicitor. If an offer is made prior to the tender close date, it is drawn up on a standard Sale and Purchase Agreement.

You can’t sell a secret so you will still need your agent to build an effective marketing campaign and run regular open homes.

Price by negotiation

Selling a property by negotiation is a good way to sell when it is difficult to estimate the price your property is likely to sell for.

This sales method sees a buyer make an offer based on what they believe your property is worth. Buyers have to do their own research to make this judgement and then you can negotiate with them on price through the agent.

The benefits of selling by negotiation:

• It allows you to set the price by comparing “like” properties
• It creates an opportunity to achieve a premium price for your property
• There is no time pressure on buyers
• Can be used with no price indication

Negotiating range

You can market a property by giving a pricing guide or indication of the price range you expect to achieve for your property.

The benefits of selling with a negotiating range:

• It allows your home to be marketed to a wide range of buyers
• Gives you the flexibility to negotiate price within a wider range
• Helps your property appear extremely price competitive

Fixed price

Properties can be advertised with a price. This method of sale still allows the buyer to negotiate with you on price.

The benefits of selling with a fixed price:

• Makes buyers most comfortable knowing vendor’s expectations
• Recent market statistics help to set the price

Deadline Sale

A deadline sale is similar to a tender in that buyers submit confidential written offers for your property by a set date. Offers can be accepted prior to the advertised close date, but this must be made clear in the advertising.

There is no reserve price but there may be a price guide. The difference between a deadline sale and a tender is that rather than submit an offer on tender documents, the buyer submits their offer on a standard Sale and Purchase Agreement.

The benefits of selling by deadline sale:

• It creates a sense of urgency as there is a fixed period of time marketing the property
• Competition is heightened which can lead to a premium price
• All offers are confidential
• You have the option of accepting an offer before the deadline date as long as this is clear in the marketing material
• You have time to consider the offers before you make a decision
• There is no ceiling on the price – no restrictions by advertising a price
• Great for properties that have a special something about them or where they are difficult to value

You can’t sell a secret so you will still need your agent to build an effective marketing campaign and run regular open homes.