At Ray White Arrowtown we understand that there is a lot more to placing your house up for sale than simply placing a ‘For Sale’ sign in front of your property. Below you will see the four major marketing strategies we use in the sale of New Zealand real estate, i.e. sale by Exclusive Agency, Public Auction, Tender or Set Date of Sale.
Sale by Exclusive Agency
Your property would be placed in our hands as exclusive agents for the agreed period of time. As your exclusive agent we are committed to actively marketing the property for sale.
Under this arrangement the property will be promoted to the market either with or without a predetermined asking price. The terms of the final contract can be changed as a consequence of negotiations with the buyer.
Some consider this method suitable if they are not in a hurry to sell and are prepared to wait until the right buyer comes along.
Placing a price on your home guarantees that the amount set will be the maximum price you will be likely to achieve. People often offer less, but rarely more!
This often leads to vendors over pricing their home, which itself eventually has a negative effect upon the price achieved.
As a result of the unlimited time frame, there is little urgency placed upon potential purchasers to buy your property.
Their own personal needs and the general market conditions are the only two things placing pressure on the buyers.
Sale by Public Auction
The sale of property by auction is widely recognised as the most effective and successful method of achieving a premium price for your property in the shortest possible time. This is achieved by the following:
Your property will be marketed without a price thus eliminating the possibility of underselling or the negative impact of it being overpriced.
An Auction Advertising program is an impressive demonstration of your commitment to sell, with a targeted marketing campaign intended to saturate specific buyers in the market.
Motivated purchasers like to know that they are dealing with a motivated vendor.
The unconditional contract of sale will be on your terms and conditions.
An auction date creates a sense of urgency yet still allows purchasers ample time to complete their own inquiries and arrange finance. On the actual day of the auction each potential purchaser can clearly see their competition, which builds a competitive, emotive environment, often resulting in a premium price.
Sale by Tender The marketing concept for this strategy is similar to that of Auction except that both you and the purchaser can achieve a sale without the loss of confidentiality associated with a Public Auction.
The purchaser must complete a form of tender and submit this together with a preliminary deposit to the agent before the determined closing date. As the seller, you may accept, reject or further negotiate with whichever tender you wish.
The disadvantage is that a purchaser may impose conditions with their offer and these conditions could be subject to considerable negotiation prior to the sale being effected. The law precludes the vendor accepting offers prior to the close of tenders. As a consequence of those conditions, the sale may fail to proceed to becoming unconditional.
Set Date of Sale
Very similar to the Tender process except that all offers are written on the standard, Law Society Sale and Purchase contract, there are no specific requirements re deposit or the locking in of tenders for any period post closure, you may accept offers prior (all parties are notified) and all offers are negotiated by the salesperson.