Which option is best is based on your home, and needs. Your agent will give you recommendations regarding which would likely yield the best results. The below information briefly describes each:
Your home goes onto the market with a predetermined asking price agreed between you and your
agent, based on market analysis. There is no official sale date.
Your agent may still recommend a regular 'open home' and will discuss the options for your marketing strategy. Potential buyers will either accept the predetermined price or, start by making a lower offer. It's usually best to have your agent handle the negotiations, which will be aimed at raising the offered amount so that we can achieve the highest possible sale price for you.
Something to note - there is a 5 day ‘cooling off period' during which the purchaser may withdraw with a minor penalty, following acceptance of the offer.
This method of sale is effective in the long term and targets buyers who want to visit homes in a specific price range. These buyers are often not in a position to place bids at a sale by auction, and most commonly these offers will be subject to conditions such as finance and building inspections. It is also attractive to those serious buyers who feel they are more likely to succeed with this method than bidding publicly in an auction.
Points to remember:
- The predetermined price will turn out to be the maximum paid or the basis of lower offers.
- The open-ended timeframe can result in the property for sale being on the market for a longer time increasing advertising costs and extending the date of settlement.
Auctions in Townsville
Auctions are designed to expose your property to the maximum number of buyers, maximise your sale price and minimise the number of days your home is on the market.
Your home is put up for sale on a specified date and this is preceded by an intensive marketing campaign and selected ‘open days' all of which indicate your commitment to sell.
The contract of sale is on your terms, and the conditions of the sale are predetermined. The impending auction date can create a sense of urgency and desirability amongst buyers. You are not obliged to accept an offer that does not reach your reserve price. You can however decide to negotiate with the highest bidder/s.
Auctions offer extra opportunities for a property for sale because an offer can be made before, during or after the auction date. Once a sale is made, whether by accepting an offer in writing before auction day, or at the fall of the hammer on the day itself, the buyer must pay a deposit to secure the property. This means the sale is final, both parties are bound to it and there is no cooling off period for the buyer.
This method of sale is aimed at letting the market determine the highest price for your home.
Points to remember:
- Some potential buyers will be excluded, in particular those who don't want to risk losing money on the cost of building, pest and other inspections if they are outbid.
- No stated price opens your home to a much broader range .