Home Sellers Journey - Choosing the Best Method of Sale for Their Property
Having decided to sell the family property, Bianca and Christian needed to decide how they were going to sell their property. The two options they were looking at were either private treaty or auction.
Here they discuss the pros of cons of each option and how they made their decision.
Understanding their options and the pros and cons of each
For Sale or Auction?
Choosing the right marketing campaign for your property
In strong real estate markets around Australia vendors (sellers) are choosing to sell their homes through auction rather than via a private treaty sale. When prices are going up buyers are keen to buy. People don't want to miss out on securing a property in an upward trending area where or missing out and having to pay more as prices increase.
Auctions can encourage buyers to outbid each other as they can get caught up in the excitement and pace of the event and the drive to ensure they secure your property. The seller knows exactly when a sale and settlement will occur in the event of a successful sale. The benefit of this is being able to plan ahead with your next move.
For locations that are not experiencing a demand for properties or an increase in property prices an auction may fall flat. This is when you might consider a private treaty.
Sale by private treaty requires the seller to set a price from the beginning of the campaign. Ask for guidance from your agent when establishing your asking price and refer to comparable sales in your area. In general, sale by treaty gives the seller greater control over the sale, more time to consider offers by potential purchasers and the ability to extend the time the property is listed on the market Plus potential purchasers must make offers on your property without knowing what other buyers are willing to pay.
The Pros and Cons of Each Option
To summarise here are the pros and cons of selling through auction and private treaty:
- You can achieve a good price due to competition
- Auction day is the final sale date
- A quick settlement is possible as sales are unconditional
- You need to find an alternative sale method if the property does not sell
- Marketing campaigns can be costly
- There is no guarantee of getting the price you want
- You can negotiate the sale price with buyers
- You can set specific requirements such as a settlement date
- Marketing campaigns are generally less expensive than for auctions
- There is no definite sales date
- A sale could take longer if you can't negotiate your desired price
- You may need to open your house for inspections for a long period and more often
Bianca and Christian's Decision
Bianca and Christian decided to sell via auction, as there are plenty of people looking to secure property in their area. 'I think an auction is more transparent. In the current real estate environment the prices are quite high so I think you want to give everyone an opportunity to have a go. Also once you get to the higher end of values it tends to be the more acceptable method of selling,' said Bianca.
A strong marketing campaign to sell a property is one of the most important components of the entire sales journey. It can include a mix of print, online, signage and direct marketing.
'We chose to go with a big online campaign and also ran ads in the local newspaper and Chinese language papers,' said Bianca. It is important to target the right market with the right campaign. You need to consider who you think would be interested in living or investing in your property. This may take a bit of research but your real estate agent should have plenty of information to guide the campaign in the right direction.
The internet is generally the first place people look for a property and it is the most efficient way to view properties for sale in one place.
Have a say in how the ad for your property is going to look. In collaboration with your agent choose the images that best represent your place. With an online campaign you can include a 360 degree virtual tour, floor plans that people can click on to show how each room looks and images showing the property at different times of the day and night.
Don't overlook the power of having something tangible for prospective buyers to look at as well. Every household who receives a drop card looks at them. It may be a glance or read in its entirety but they are hard to ignore and can attract potential buyers that may not have otherwise know about your property.
Drop cards can be specifically targeted to a certain location or demographic. They can instantly appeal to the reader with a beautiful image of your home and give details on how to find more information on the property and open for inspection information. This form of marketing can appeal to a potential buyer who wasn't in the market until the 'perfect' property landed in their letterbox.
A clever and appealing combination of online and print marketing can ensure you don't miss any potential leads. A multi-faceted marketing campaign is likely to include an attractive signboard out the front of your home with the agent’s details in bold, your property listed on a number of websites with social networking alliances, a series of print advertisements in both the midweek and weekend papers plus professional brochures with a floor plan on the back are also great for the buyer to take home.