There
are several methods available for selling your home. The following is a brief
outline of:
• For Sale by Open Listing
When you first list your home with more than one real estate agent company it
is known as an Open Listing. Each company deals with the seller and basically
works against the others to sell the property. Only the selling agent is paid
commission on the sale of the property.
Many real estate companies will not advertise or market open listings because
of the need to make a quick sale rather than a well negotiated sale to the most
suitable purchaser.
Many sellers feel that by listing their home with more companies, they will
access more buyers. This, in fact, is not the case. Buyers shop around for
houses. If your home is marketed correctly, the buyer will find it.
• For Sale by Sole Agency
This is when you appoint an agent for a determined period of time (no more than
62 days at the time) and still retain the right to sell the property yourself
and pay no commission as long as the buyer was not introduced to your property
by the agent during the period of Sole Agency, in which case you are still
obliged to pay commission.
• For
Sale by
Exclusive Marketing
Exclusive marketing arrangements have best results to sellers because the real
estate agent has the exclusive responsibility for the sale and can invest time
and expertise into the marketing effort for your home. (Note an exclusive
marketing package may be sale by auction, tender or a no price method of
marketing. All are exclusive arrangements.)
At present, most homes in your area sell within 30 - 90 days. Often they sell
much more quickly but sometimes it is necessary to give enough time for
persistence to pay off. We usually suggest a marketing program be put in place
for no more than the legal maximum term, ie, 62 day exclusive agency (if you
are happy with your sales agent and the way he/she represented your property to
the market you may want to extend for a further term.) Beware: NO agents should
be asking for automatically renewing exclusive agency or any other type of
binding agreement.
The By Negotiation strategy is a very successful strategy which is positioned
between For Sale and Auction. It does not set a selling date, but it does
maximise the price because of its strategic approach. Instead of placing a
price on the property that includes a negotiating buffer, which often deters
the target buyer, a price range is used.
You as the owner are always in control of the decision to sell. There is no
possibility of selling for less than the property is worth. In most cases, the
price achieved by this method exceeds private sale expectations.
• Auction
Auction has been around for hundreds of years as a way of selling all sorts of
things. When it comes to real estate, auction is gaining momentum as the
preferred way to sell across
Australia.
When there is an identifiable excess of demand, an auction has no peer.
Auction can attack the market both in a buyers’ market or a sellers’ market. In
a sellers’ market when there are few homes to sell and many buyers, it will
give the sellers a higher price. In a buyers’ market where there are many homes
for sale and fewer buyers, you may attack the market and therefore save
valuable time.
