The methods you choose to sell your property and express its asking price are not only directly related to the selling outcome, they are also an integral part of the marketing plan. Irrespective of how many opinions of market price you receive, it’s the marketing and selling processes that expose the reality of the price in almost every case. Together, we’ll discuss the method of sale and pricing strategy that suits your circumstances whilst achieving the best possible selling outcome. We respect that with your property, it’s ultimately you who should decide a selling method and asking price that you’re comfortable with.
CHOOSING A SELLING METHOD
The manner in which your property is promoted to the market is a most critical component of achieving the best possible price. Ultimately, the decision regarding how your property is marketed is up to you, although we will recommend the selling method we consider most appropriate in the current market conditions and to your needs.
For Sale by “Private Treaty”
This method of sale is the most widely used in Western Australia whereby property is “listed” for sale at a specific price and a contract is negotiated between the Seller and Buyer, usually facilitated by a real estate agent.
Sale by Auction
Selling your property by Auction is often a viable alternative to Sale by Private Treaty. Auctions are a transparent way of negotiating property as Buyers compete and bid in a public forum to purchase your property. Statistics indicate that properties sold by Auction spend less time on the market.
Sale by Tender
Rarely used in selling residential property, selling by tender involves calling for interested buyers to submit their offer (tender) by a certain date. Normally, the various tenders remain confidential and the vendor retains the right to accept or refuse any of the tenders.
Sale by Transparent Negotiation
A new method of sale emerging in the WA market which attempts to combine elements of private treaty, auction and tender.
EXPRESSION OF ASKING PRICE
Fixed Price Selling
The most traditional method of selling your property with a declared price advertised can be limiting should your asking price be too low, it’s uncommon to sell for above the full asking price; if it’s too high, buyers are less likely to commit to making an offer.
Buyers are sometimes frustrated by no price strategies as they’re required to contact the Agent for a price guide to determine if the property is within their affordability range. Usually expressed as “Call for Details” or “POA” (Price on Application), it’s an excellent method of attracting genuine buyers in the early stages of a marketing campaign. It also provides useful insight into the buyers views of value for your property in the current market conditions.
Price Range Selling
Two prices are declared “around” the anticipated selling price. For example, an expected selling price of around $800,000 might be ranged at $790,000-$820,000. This method attracts at the lower price but gives the opportunity to improve the outcome thanks to the upper price figure. The seller needs to be prepared to entertain an offer of $790,000 in order to lawfully use price range selling.
Expressions of Interest (EOI)
Followed by an “around” price or no declared price. More common nowadays especially in circumstances where accurately determining a market price is difficult, the property is highly desirable where multiple offers are expected or the selling outcome may exceed expectations.
The From Pricing
A marginally lower than expected price is announced to encourage competition amongst buyers and attract multiple offers. Buyers, lured by the chance of a bargain are encouraged to make an offer over a declared price. Sometimes expressed as “Offers over”. For example, “From $899,000” or “Offers above $899,000”.
Set Date Sale
In an effort to inject some urgency into the market, the property is advertised as all offers presented by a date, usually about four weeks after the commencement of the marketing. This method is a blend of Auction and Private Treaty and can be effective where offers are expected to be plentiful.