6 ways to market your home
FIXED PRICE
A fixed price is likely to …
• Enable both unconditional and conditional buyers to consider your property
• Make it easier for a buyer to negotiate a sale
However, it may also …
• Force you to set a price before testing the market
• Limit buyers only to those looking in your immediate price bracket
• Remove a sense of urgency as there is no fixed sale date
NEGOTIATING RANGE
A negotiating range is likely to …
• Enable both unconditional and conditional buyers to consider your property
• Allow for a margin for a premium without overpricing your property
• Attract a greater range of buyers depending on the margin of the range
However, it may also …
• Remove a sense of urgency as there is no fixed sale date
BUYER BUDGET OVER (BBO)
A BBO marketing strategy is likely to …
• Enable both unconditional and conditional buyers to consider your property
• Allow for a margin for a premium without overpricing your property
• Attract a greater range of buyers
However, it may also …
• Remove a sense of urgency as there is no fixed sale date
NO PRICE (PRICE BY NEGOTIATION)
A PBN marketing strategy is likely to …
• Enable both unconditional and conditional buyers to consider your property
• Allow for a margin for a premium without overpricing your property
• Prevent buyers from attacking your asking price
• Encourage buyers to evaluate the property for their needs not eliminate it based on price
However, it may also …
• Attract less buyers as many will not pursue if there is no price indication
• Remove a sense of urgency as there is no fixed sale date
AUCTION
An auction strategy is particularly useful when a property has unique characteristics and it is difficult to otherwise ascertain an accurate market value. This method of sale is also beneficial where the vendor has a specific deadline and is looking for a fast, cash sale.
An auction strategy …
• Attracts genuine, motivated buyers
• Allows you to dictate the terms of the sale
• Allows you to secure a cash sale that is completely unconditional
• Fosters competition among buyers which may push the price up
• Eliminates perceived negatives and objections to an asking price
• Creates a sense of urgency among prospective buyers before auction day
• Allows you to accept an offer prior to auction day
However, it may also …
• Attract less buyers as many will not pursue if there is no price indication
• Exclude competition from conditional buyers
• Give the prospective purchaser time to look at other properties
• Create pressure for you to accept the best price available on auction day
• Create a stigma for future marketing if the property does not sell at auction
TENDER (CLOSED)
A closed tender is very discreet and requires that each interested party commit to paper their “best” offer. All offers must be submitted on a tender document in a sealed envelope to the agency prior to the tender close date. The offers are confidential until opened by the vendor after the tender has closed. The vendor may accept one of the offers or choose to negotiate further with one of the tendering parties.
A closed tender …
• Offers absolute privacy
• Attracts both conditional and unconditional buyers
• Protects the integrity of the marketplace (nobody knows the number of tenders that were received or the amount the tenders were for, therefore not undermining future marketing)
• Forces buyers to put forward their best offer or risk losing the sale to a competing bidder
• Eliminates perceived negatives and objections to an asking price
• Creates a sense of urgency among prospective buyers
• Allows you to consider all offers in writing
However, it may also …
• Attract less buyers as many will not pursue if there is no price indication
• Give the prospective purchaser time to look at other properties