Within a buyer's market and with so many daunting options for selling Gold Coast real estate, the challenge for any potential seller is to find out which sales avenue will most suit their needs. Auction? Open listing? Exclusive listing? What is the best way to sell your home? Does it really matter?
The short answer is yes.
Selling Your Home
Selling your home can be an exciting challenge. It can be a significant step towards achieving a previously-elusive life goal. It could be the sale you need in order to flip a successful investment. Unfortunately, it can also be very stressful. Selling Gold Coast property is not always an easy process, but one of the best ways to reduce unforeseen problems is to educate yourself and figure out which method of sale is best for you:
The allure of a private sale lies in the fact that you won’t have to pay a sales commission to an agent. However, knowing this, buyers usually will try to negotiate a lower price on your house. You will also have to deal with all contract documentation on your own, which can become an incredibly frustrating and time-consuming experience for those unfamiliar with real estate.
Open listings can seem very appealing from the outset; you'll have a number of agents all working for you, bringing in tens of prospective buyers at a time, all competing for a sale. But unfortunately, this Gold Coast real estate dream may be just that... a dream. The cold, hard truth of the matter, is that an open listing tends to be the most likely to fail. Like the economic theory of diminishing returns or the "too many chefs in the kitchen" parable, having a number of different agents work on your property generally leads to poor results and feelings of indifference, as a result of a lack of responsibility. Agents are less likely to know the intricate details of an open property, and you'll be left without a committed agent.
Offering exclusivity to an agency is arguably the easiest and most rewarding experience for many buyers. Now, we are biased to say that of course, but there is truth to it. You’re getting a committed agent who will bring their insight, dedication and database to the task of selling your home. Agents know how to market properties, and they know how to sell them. More to the point, a good agent will have an extensive database of potential buyers to contact and prospect, and a good agent will place emphasis on quality, not quantity.
Selling by auction is an exclusive agency agreement and provides a seller with three stages of opportunity to make a sale. Your property could sell before an auction, live on the day, or in the event that the property is passed in, after the auction. We wrote another article about selling at auction that covers this in greater detail.
The main difference between Auction and Tender is the type of bidding which occurs. With an Auction, the bidding is competitive and public, the ‘winner’ signing the Contract after the Auction is finished. A Tender, on the other hand, is a private affair with Buyers submitting signed conditional or cash Contracts to the Agent in a sealed envelope by a certain time & date. The Agent is not required to disclose the number of offers to other Buyers, what they are, or the number of Buyers bidding for the property. With a Tender, the amount of the bid is usually in direct proportion to the Buyers’ budget or desire to own the property, usually with a large gap between the top bid and other bids. All Tenders are presented to the Seller who then decides which Contract, if any, they are interested in accepting. Further negotiations may sometimes be necessary with the chosen Contract.
Which Method of Sale Is Right For You?
There are a number of factors that will determine which avenue of sale you should consider for your property. Whether you're selling residential or commercial property, each style of listing will have its benefits and weaknesses: you could weigh these as time, stress, ease of sale, marketing expertise, or networks and demand. We would encourage anyone selling their home to speak with their local real estate agents and to do their research. Ensure that, if you do choose to list with an exclusive agent, that you can rely on that agent to do their job as efficiently as possible. Remember, not all real estate agents are the same.
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