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Methods of Sale

At a Glance

Auction

  • Widespread marketing
  • Set date forces buyer to make a decision
  • Offers on the day are cash/unconditional
  • Owner sets the terms of sale (settlement date etc.)
  • No price that buyers can object to and try to beat down
  • Buyer competition forces price upwards
  • Attracts buyers over a wider price range
  • Buyers decide on suitability of property rather than price
  • Company focused on achieving best price
  • Property compared to others on its features rather than asking price
  • Short intensive marketing with high impact
  • Has further marketing opportunities if not sold on day
  • Structured plan in place rather than waiting for buyer 

 

General Agency

  •  No person has full responsibility for the sale
  •  Marketing will be limited
  •  No pressure on real estate company to sell
  •  New buyers will be attracted to other properties with stronger marketing
  •  No communication between agencies may result in the property being undersold 

 

Exclusive

  •  More widespread marketing
  •  Salesperson takes full responsibility
  •  Buyers set out to pay less than asking price
  •  No control over conditions contained in sales contract
  •  Pricing limits the amount home seller will achieve
  •  If priced too high buyers will offer on other properties
  •  Property can become "stale" and price reductions may be necessary 

 

Tender

  • Widespread marketing
  • Sets a specific time frame—buyers must decide
  • Ideal if property needs "investigation" by buyers
  • Prices offered remain private
  • Owners can choose which buyer to work with
  • Offers may contain buyer "conditions"
  • May encourage lower offers
  • No buyer competition as in auctions