Selling methods explained: Universal Buyers Agents explains the difference between common selling techniques and how to succeed.
THERE’S more than one way to sell a property, some are more straight forward while to hers can leave prospective buyers scratching their heads.
Navigating the terminology and sales methods may seem like the best way to get ahead, but Universal Buyers Agents property expert Darren Piper said the most crucial things buyers should do is their homework.
“One of the questions we’re constantly asked is how to navigate the growing number of selling methods,” Mr. Piper said.
“And there are plenty; on sale, by negotiation, tender process or best offer, auction and offers over.
“What we always say to anyone looking to purchase property is that the method of selling is secondary, as strange as it may sound.
“What it really comes down to is doing the right homework.”
Mr Piper said his network for buyer’s agents focus on doing research on the area, what other properties have sold for, due diligence on issues and opportunities and understand the true value of a property.
“Real estate agents use a variety of strategic plays to achieve the highest price for their vendor,” he said.
“What we do is cut through the smoke and mirrors and determine the correct value of a property so you don’t end up paying too much and buy a property on favourable terms.”
Auctions are one of the most daunting selling methods, especially for first home buyers. That’s why many buyers engage the help of an expert to pre-plan, do their homework and handle the bidding process.
Unlike a typical market sale, properties sold at auction have no cooling-off period so it’s important to do your due diligence and inspections prior to auction day and have your deposit ready at the time of sale.
A private treaty sale is the most common selling method and gives both buyer and seller the most clarity and flexibility to negotiate price and purchase conditions.
The property is listed for sale and prospective buyers can make offers on price and selling conditions.
These selling methods are usually associated with high-value properties and require you to make a written offer which is passed to the owner through their agent for consideration. Often the price isn’t advertised and you will be competing against other buyers but will not know what ballpark their offers are in. Properties are normally sold to the highest bidder.
This selling method is used by agents to start a conversation with buyers about price without revealing what the seller will accept. It’s a way to scope out interest for a property and get a sense of how high the property could sell for. Buyers should do their research and scope out how much similar nearby properties have sold for to get an indication of value.
Designed to pique interest and encourage competition among buyers, “Offers over” is used to lure buyers in with the chance of a bargain by listing a property with offers over a set value. For example: offers over $500,000.