Each method has its benefits, there is no ‘best method’ to suit all. Different methods suit different situations, properties and market conditions. It is important to discuss these with your salesperson to avoid putting barriers in the way of potential buyers.
An auction is always an unconditional cash sale. The sellers set the settlement terms and reserve price.
The reserve price remains confidential with the auctioneer and real estate agents. This can create competition between buyers, pushing the price upward as a result.
It is possible for a seller to sell before auction if they receive a cash offer they find acceptable. If this happens, a seller may choose to either move the auction date forward (giving buyers the same opportunity) or sell to the buyer that made the offer.
A tender is rather like a ‘silent auction’. However, there is no visible bidding, and the offers do not have to be unconditional cash offers.
Like Auction, there is no advertised price, meaning if there are no offers that appeal to the seller, they do not have to sign. The seller can however decide to start negotiating with the most favourable offer.
All interested parties present their offer in sealed envelopes, given to the licensed real estate agent and then presented to the seller within a set date and time.
This is quite like a tender process, but not as formal. It can work very well for those sellers who don’t want to risk over-pricing or under-pricing their property. Buyers have to put in their best offer by a set date, and the seller will choose one to accept or negotiate with or accept if they decide.
If the advertising has ‘unless sold prior’ a home can sell prior to the deadline sale date.
Price by negotiation means the vendor is willing to receive an offer at any time. It is different from a Deadline Sale where a vendor will accept all offers only up to a certain date.
Price by negotiation has no end date, so is open ended as to its timeline. Once an offer has been submitted and accepted conditionally, any further offers must wait for that initial deal to be cancelled before their offer can be accepted. Further offers can be submitted this way as a ‘back up offer’.
Put simply, your property is listed with a price attached which fits with recent sales and current competition. Your real estate agent can give you a good indication of this.
Buyers will present offers, which are usually conditional, and negotiations continue until both parties are happy with both the conditions and price.
It is important to research the market yourself and take on board what a licensed real estate agent has recommended before advertising a price on your home.
Agent should leave you with all the documents for the sale of your home. They should provide a listing agreement form, an REAA approved guide for sellers booklet, and the CMA (Comparative Marketing Analysis) of your property.
How does your property stand up against those currently on the market? Is there anything you can do to stand out from the rest? If you do not choose to use auction or tender, ensure your home is priced properly before you begin to market it.
A trusted real estate agent will give you a Current Market Appraisal (CMA) which will include properties comparable to yours that have sold recently, and any properties currently on the market in your area.
Obtaining a registered valuation from a local registered company will also assist buyers in making an offer.
When you receive an offer, it is best practice to contact a solicitor, or have a real estate agent contact one on your behalf, to go through the technical aspects and finer details.
There are two traditional selling seasons – October and November before people go away for their summer holidays and February and March, usually the peak of the selling period.
Most people are back from holiday wanting to finalise their deals, and the weather is still nice for viewings.
That being said, there is never a better time than today to buy or sell, and selling in winter can also have great outcomes. There are less houses listed, which means less market competition.
Whatever the time of year, a well presented, well priced, and well promoted property will sell.