Following is a list of the different marketing methods and the advantages and disadvantage of each.
Auction
Positives
Opportunity to maximise sale price.
Pre-planned marketing programme to maximise property profile in the market place.
Buyers compete against other buyers, not the vendor.
Established sales date creates urgency for buyers.
Eliminates perceived negatives and objections to any asking price.
Unconditional sale on the vendors terms and maximum price on the day.
Has one person responsible for all activities and reporting to the vendor.
Negatives
Conditional buyers can feel excluded.
Tender
Positives
All buyers are eligible, conditional and unconditional.
Can't attack the vendors price, opportunity to maximise the sale price.
Pre-planned marketing programme to maximise property profile in the market place.
Creates urgency for buyers with a preset closing date.
Buyers must give best price and terms.
You can negotiate with buyers after bidding has closed.
Privacy - you don't have to declare what bids were received.
Has one person responsible for all activities and reporting to vendor.
Negatives
Buyers not placed in open, competitive bidding situation - may have many conditions to satisfy.
For Sale By Negotiation
Positives
A proven advanced system of marketing with established negotiation guidelines.
Opportunity to maximise sale price by not fixing an upper limit with an asking price.
Allows a margin for a premium without over pricing your property.
A greater range of buyers can consider your property.
All buyers are eligible, conditional and unconditional.
Buyers can't attack your asking price.
Has one person responsible for all activities and reporting to vendor.
Negatives
No urgency created because no fixed sale date.
Buyers can be frustrated not having a price guideline.
Exclusive Agency with an Asking Price
Positives
All buyers are eligible, conditional and unconditional.
Fixed asking price makes negotiating easier for the buyer.
Has a defined marketing programme.
Has one person responsible for all activities and reporting to vendor.
A market accepted method of selling with over 90% of our sales from exclusive listings.
Negatives
Fixed maximum price.
No urgency created because no fixed sale date.
General Agency
This is when two or more companies work on your property at once.
Negatives
Lack of control over sales process.
No commitment to regular advertising.
Appropriate servicing of the listing may suffer.
No one agency has responsibility for ensuring 'the best' sale price is obtained.
Private Sale
Where an individual attempts to sell their property with no assistance from a Real Estate Agency.
Positives
No fees
Negatives
It provides limited access to buyers and advertising media.
Potential legal difficulties.
The extremely difficult situation of negotiating face to face with a buyer.
Time intensive.
Lack of marketing due to low incentive funding.
Buyers want reduced price equivalent to commission.
Buyers don't give honest feedback
|
