What is the best way to sell your home?
With so many options available, deciding on a selling strategy can be a confusing process for owners.
As real estate markets have evolved, numerous options have been tested and developed. Gone are the days of simply using an asking price. Now we have deadline sales, auctions, tenders, buyer enquiry over, price by negotiation, expressions of interest, set sale dates and many more.
Each salesperson and each real estate company will have their preferred selling strategy, but how do you, as the owner, make the right choice? How do you know which option is going to help you get the best possible price for your home and sell it in a reasonable period of time?
In this guide, we will group the various options into 4 main categories, explain the pros and cons of each and suggest situations which might best suit each option.
Asking Price (includes Buyer Enquiry Over & other variations)
If you ask any buyer what strategy they prefer, the answer will always be 'asking price'. The reason is this makes it clear what your expectations are, and buyers can decide whether it's in their price range or not. If they are interested, they can decide whether to try and negotiate you down from your price or pay around or above the price if there is strong competition.
Using an asking price is therefore a buyer-friendly strategy, which can help attract more interest to your home. But only if the price is attractive. Buyers in any real estate market are highly price sensitive, so if you set your asking price even slightly too high, it can seriously damage your selling process before it even begins.
Selling by price, you can easily end up pitching too high or too low. Pitch it too low and you end up under-selling. Pitch it too high and it's possible no one turns up.
Best uses: Properties with lots of comparable sales where likely market value is well defined. Houses that could be challenging to sell in a tough market can benefit from using a sharp asking price to generate interest. Also ideal to use in a situation where other methods have been tested but failed to procure a sale.
Tender (includes Deadline Sales)
Fixed-date selling strategies have become the norm in many real estate markets. Most buyers don't enjoy going through these processes because they usually remove the opportunity to buy the property quickly and avoid competition (hint: this is a plus for the seller). The lack of a price guide can also frustrate buyers however it allows sellers to see where the market values their property, and to secure a premium price when possible.
The fixed deadline date can provide the impetus to help bring about action, especially when potential buyers have other options to consider.
Due to the private nature of Tender or Deadline Sale processes, they can work well whether there is 1 interested party or many.
Best use: Ideal for situations where sellers are unsure where the value of their property sits, are not in a rush, don't want to limit their result and prefer a more private approach with time to review and consider any offers.
By Negotiation
Marketing with no price and no fixed deadline date essentially says to the market 'We are open to offers at any time'. This strategy can work well if the property has a limited market and you want to secure the right buyer when they come along. The lack of a price guide can frustrate buyers, but it also allows owners to potentially get a feel for where the market values their property.
Best use: Helpful if you are selling a property with very few recent comparable sales, or when a fixed-date or asking price campaign has not produced any interest.
Auction
Nothing gets the competitive spirit going like sitting in an auction room, competing against other motivated buyers to secure your dream home. If owners are confident there will be a lot of interest in their property, an Auction can be a fantastic way to maximise their selling price and produce a quick, clean sale. While the process can feel daunting and public, buyers usually appreciate the openness of the approach, where they have a chance to offer more if they are outbid.
The downside of an Auction is that it rules out conditional buyers, who can only offer if the property doesn't sell under the hammer.
Best use: The key to a successful auction is to have a property that can attract multiple cash buyers in a short period of time. Think popular homes in a high-demand price range.
In Summary
No matter which strategy you go with, choosing a real estate professional will be the decision that has the biggest impact on your final sale price.
To get a premium price, you want a real estate professional who has a database of clients looking in your area. One who understands the key target market for your property and can employ a proven strategy to attract the right buyers and encourage competition between them where possible.
We assist our clients the entire way through the moving process, from deciding which pre-sale renovations will add the most value, right through to moving day. So if you are thinking of selling in the next 3 - 9 months, get in touch today to book a consultation. We would love to help.
