5 Questions To Help You Choose The House Selling Strategy That’s Best For You
Q: “What are the 3 main ways to sell a house?”
The 3 main ways to sell your house are:
- Auction
- By negotiation
- Set sale/deadline treaty
It’s important to speak to your real estate advisor on what method best suits you, your property and the current market conditions, but we have a couple of rules of thumb:
- In a hot market: auction is our preferred method, hands down
- In a cool market: by negotiation and deadline treaty are our preferred methods
Q: “In a hot property market, is selling my property via auction the best option?”
The auction room is very transparent.
In a hot market this is great because it gives buyers the confidence to bid beyond what they thought they would bid to.
In a cool market it does the opposite – it allows the better buyer (who was initially prepared to pay top money) to see just how low the other cash buyers are.
It can stop them paying as much as they were planning to pay.
In other words it gives the buyer too much power.
Q: “What are the advantages of ‘by negotiation’ and ‘set sale date’ methods of selling my property?”
There are 3 main advantages:
- Buyers are able to make offers subject to conditions so it’s easier and less expensive for them to make an offer
- Both cash buyers and conditional buyers can make offers so it’s more conducive to generating competition
- When more than one party comes to paper at once we call it a multi-offer
- In a multi, everyone has to sign a form to say they are aware there are other buyers and that they are putting their best foot forward as they may not get another chance
- Unlike an auction, this process is confidential so the better buyer can’t see how much lower the other buyers are
The beauty of a set sale date (also known as a deadline treaty) is that it allows you to have a clear picture of the market before you need to make a decision.
The beauty of ‘by negotiation’ is that buyers are more likely to make an offer immediately i.e. there is less chance of them cooling off.
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- Note that if you are working with a nimble agent, a deadline can be set or a flash auction can be run at any point of time in a ‘by negotiation’ campaign if the right kind of interest builds up.
Q: “What is the advantage of a no-price property listing?”
Sometimes, the best price is no price at all!
The beauty of a no price campaign, like auction, is that it allows us to draw interest out of the market without price being an objection.
It enables us to avoid over-pricing and languishing on the market.
It also enables us to avoid underpricing as with no cap on the price there are no limits to what you might achieve.
Q: “Should we state a price in our marketing when selling my property?”
A priced campaign has merit when:
- A property has previously been to market and has sufficient price feedback from that process
- It’s quite clear what the price will be due to numerous comparable properties selling recently. This is often the case with an apartment, a section or a home in a subdivision
- You have been through a no-price phase without a result. The feedback from this process can then be used to set a price
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- If you would like to achieve a result in a quick space of time, an ‘Enquiries Over’ method can help generate competition and achieve market value or above. Note – if using this method the owner must be prepared to consider all offers above the level set.
What’s The Next Step?
The market tends to be at different stages in different locations.
For sound advice on what current method of sale is working best in your location, be sure to speak to your trusted real estate advisor. If you don’t have a trusted real estate advisor talk to your closest Powers Team member, or call us on 0800 72 63 72 and we’ll put you in touch with one.
