Which Sales Method should I choose?
The three common sales methods used in real estate are listed below. DJC Real Estate is happy for a seller to choose whichever method suits them best.
An Exclusive Agency provides the Property Owner with the knowledge that the Agency marketing the property is legally and morally responsible to them. By ensuring this Duty of Care the Agency has the obligation to achieve the best outcome for the Owner in price, contract conditions and full disclosure of the Buyer's ability to complete the contract.
An Exclusive Agency provides the Agent the security of knowing that if the property is sold they will earn the commission. This gives the Agency the luxury of time to achieve the best offer rather than just the first offer.
The only risk with this method is the asking price. Is it correct to attract the right buyer?
NO PRICE MARKETING
This method provides the Owner with the ability to not set a limit on the sale price. It attempts to appeal to Buyers with a low advertised starting point. The REIQ suggests that this marketing system encourages offers below the advertised low price and can frustrate the negotiations during offer negotiations. Careful consideration should be used before marketing with this sales method.
An Auction provides both the Owner and the Agency all the benefits of the Exclusive Agency but has the difference of marketing with a deadline for buyers decision and no asking price, yet still allows the Owner to the protection of a Reserve Price.
Marketing by Auction requires the Buyer to tell you what they think your property is worth, rather than you telling them an inflated price to get an offer. The Buyers price is based on asking prices of unsold similar properties, this creates a more realistic offer from the Buyer.