So, You’ve decided to sell your home. You’ve cleaned the house up and done any maintenance required on the property, as well as having the house inspected, valued, and then finally seen your local agent. As you discuss details on the selling the home, you will be asked how you would like to sell your home.
Some people may not be aware that there are a few different ways that you can market/sell your property, or they may not know how they work and what their benefits are.
Each method of selling has its own benefits and the one that you decide to go with will be depicted by these factors.
So here’s a quick guide on the different methods of selling your home.
Auction – This is generally the most popular way to buy and sell your home. When you are with your agent, you will set your reserve price (minimum price you’ll sell the property for) and the agent will market and go out on a specified date and conduct an auction for your property. You yourself can do this as well, but there are very strict laws around how to conduct an auction so we advise you leave something like this to a professional.
If the bidding on the day doesn’t reach your reserve price, then there is no sale or your agent may negotiate with the highest bidder.
An auction can promote a sense of urgency and competition amongst buyers, leaving you with a potentially higher selling price, although some may find the whole experience intimidating.
Auctions can also be a more expensive option.
Asking Price/Private Sale – This is potentially more appealing to buyers, due to its less intimidating manner as well as being a process that is easier to understand.
You and your agent will decide on an asking price for your property and this will be clearly advertised. Be aware that buyers may try to negotiate down from your asking price, so prepare and strategize your asking price with your agent accordingly.
Also be aware that due to the lack of urgency, these can take somewhat longer to sell. This option will attract interest from the demographic that may be intimidated by the auction process.
Fixed Date Sale – Also known as Tender. A popular option during a period where the market is slow or when the property is unusual, this requires yourself and your real estate agent to work out a price range prior to marketing the property. Your agent will then collect offers from prospective buyers before a fixed end date.
From here you can accept the offer, enter negotiations or re-list the property.
This method is great as it maintains a level of competition and urgency amongst prospective buyers, as well as giving you full control of the outcome and an opportunity for people to offer more than its value.
When you meet with your local agent, be sure to discuss these options as each agent may approach them differently. They may offer useful tips and information like state of the market in your area currently, and what methods will suit your property type best.
If you have enquiries, the Madeleine Hicks Real Estate team is available to call today on: 07 3355 6845.