This method of marketing creates a high profile for your property and establishes a competitive environment without having to list a price. You also set the terms, conditions and deadline. Prospective buyers become emotionally involved before they consider price and have only one opportunity to put forward their most competitive bid.
This method is essentially a simplified Tender. There are no terms and conditions that need to be followed like there often are with a Tender. The owner sets the deadline time and date with their agent and it is a low pressure environment to carefully consider offers before making a decision.
By using sale by negotiation you can both maximise buyer interest and also ensure a high sale price for your home. The buyer is also focused more on the property and less on the price. This is a great way to gain feedback from the market before settling on a price you’re happy with. It does however have no deadline time or date for offers to be submitted like an Auction, Tender and Deadline Sale.
When considering marketing your property with a set price it is extremely important to determine the right figure from the start. Market facts are used to properly gauge this figure. Over-priced properties take longer to sell and do not attract the optimum number of potential buyers, particularly during the prime selling period. The price will often drop considerably without the competition between these buyers.
An intensive, high profile auction marketing programme attracts genuinely interested, cash-in-hand buyers only. These buyers are focused on the maximum price they’ll pay, not how low their offer should be. Combined with the excitement of the big day it’s this natural level of competition that helps establish the price on the day.