Methods Of Selling
Selling your property should not be a chore. You need to know what you want and what is available to you as a seller. The way your property is listed and marketed can make all the difference in achieving the maximum price for it.
Different Methods of Listing & Sale Available to the Seller
* Exclusive Agency
Advantages
- A highly committed agent– time, effort & money will be spent on your property
- Your property is top priority with increased exposure and chance of a sale
- Dealing with a single agent is much easier
- Advertising contribution and commission rates may be negotiable
Disadvantages
- An Agent may overestimate the selling price to win your exclusive agency and the property may not sell quickly.
* Exclusive Agency with seller paid advertising
Advantages
- Likelihood of sale increases
- Your property is in the spotlight
- Buyers see more of advertised properties
- Your investment towards advertising can reap rewards with a better selling price achieved.
Disadvantages
- Sometimes the process can be without form structure
- Paying for marketing and advertising is at your risk
- No guarantee of a sale
* Sole Agency
Advantages
- You can sell the property yourself without paying an Agent commission
- Dealing with only one Agent is easier than a lot of Agents
- The Agent is committed to selling and servicing the property
Disadvantages
- Buyers may contact you and become difficult
- An Agent will still put an Exclusive Agency above a Sole Agency
* Open Listings
Advantages
- You can have the property for sale with as many agents as you want
- You can sell it yourself
- Unless the property is sold by the agent no commission is payable
Disadvantages
- Less chance of selling– open listings are of low priority to an Agent
- An agent will spend little time or money on open listings as there is no guarantee of commission.
- Dealing with buyers is not as easy as it may seem
- Dealing with a lot of Agents and their staff may be confusing and time consuming
* By Negotiation & Expressions of interest
Advantages
- Wider market reached, buyers can submit offers under their own terms
- Flexibility to buyers means better chance of a sale
- Increased price if the terms are more beneficial to a buyer
- You will see more offers and can pick and choose your preference
Disadvantages
- Risk of loss of advertising expenses without a sale
* Auction
Advantages
- A high chance of sale
- Competition is increased with multiple buyers
- Your property can be sold before the auction date
- Above market price can eventuated with competition
- A set date of sale to a cash buyer
Disadvantages
- You pay for all advertising costs
- Risk of no sale if your reserve is too high
- Lack of competitive bidding may produce low price
* Tender
Advantages
- Increased competition due to more flexible terms. This can also affect the offer price.
- Set date exists for sale
- Market price may be exceeded with competition
- You can accept or reject any bid
- You can still negotiate if no acceptable tenders are presented
Disadvantages
- You may not receive any tender
- You may have to negotiate after the process closed
- You may have to pay for all advertising