1. Sell Yourself
Naturally all sellers have the right to sell their own home. The main advantage to this method is that the seller is not obliged to pay commission to any Real Estate Agent. However, when a purchaser is dealing directly with a seller, the Purchaser usually expects the seller to reduce the sale price by the amount of commission saved. Agents have been trained in negotiation skills to obtain the best possible price for your property that the market will allow.
2. Open List
Give the property to several agents, whoever makes the sale is paid the commission, the other agents miss out. It is difficult for a seller to ask an agent for 100% commitment and effort when that agent knows he has only a remote chance, among other agents, of selling the property and being paid. Ideally, a seller wants commitment and accountability from an Agent. It rarely happens with an ‘Open Listing’. The success rate of selling an Open Listing in an allotted time of 60 days is approximately 5%.
3. Exclusive Agency
This selling approach gives an agent the encouragement to apply himself to the property, seeking out purchasers, giving the seller regular reports and doing their best to secure a sale of the property as soon as possible. Normally this sort of listing is coupled with a promotional program agreed to between the seller and the their agent. The subsequent success rate of selling in an allotted time frame of 60 days is around 60%.
4. Selling without a Price – Auction
They make the market cast the first vote on price. They force the Buyers to get their finance before the sale. They create a sense of urgency. Time and time again proven to be the most effective method of achieving the most the market will pay in the shortest time possible. High profile, regular feedback and cash contract with no conditions. The only method of sale where there’s no cooling off period for buyers. Every prospective buyer will inspect the property, attracted by the marketing which highlights the benefits and not the price.
Competitive bidding maximizes the price and a set date for sale ensures a sense of urgency amongst buyers and that the property doesn’t become stale in the marketplace i.e. is on the market for too long a period of time. When this happens, the buyers inspecting become fewer and the offers coming in are lower because of the perception that there’s something wrong with the property.
5. Tender process
Similar to Auction but more private — conditional buyers ‘bid’ as a tender i.e. submit their best offer in writing and the highest bid wins. Ideal for commercial properties.