There are several methods on how to sell a property, whether it be through auction, fixed price, or price-by-negotiation. The best method depends on several factors – the type of property, the vendor's circumstances and current market conditions. Each has its own advantages and things to consider which can ultimately affect the outcome of the sale. Learn more about each method below.
Auction
These are often favoured for properties with unique features or those in high demand as it creates a sense of urgency among buyers. This method is particularly effective in markets where competition is high. The auction process provides a high level of transparency which appeals to both buyers and sellers, as it establishes a clear timeframe and encourages competitive bidding. Generally the success of a property sale is far greater if it goes through this method however agents will need to have a clear strategy and communicate this plan with their team for the best results.
Fixed Price
A fixed price method of selling provides clarity and simplicity for both the buyer and the seller. It can attract serious buyers who are ready to make a straightforward purchase without the uncertainty of bidding. It's often preferred for properties in stable markets or when the vendor needs to make a quick and fairly predictable sale. Setting the right price however is crucial – pricing too high can deter potential buyers while pricing too low might not maximise the property's value.
Price By Negotiation
This method offers flexibility and allows vendors to gauge interest before settling on a price. It can be suitable for properties that may appeal to buyers with varying budgets. It also allows for more personalised negotiations potentially leading to a sale price that reflects the property's true market value. Negotiations can sometimes take time and there's often a risk of buyers underestimating the property's worth.
There's a few things to consider when deciding how to sell your home:
- Property Type: The nature of the property, its location and appeal to potential buyers influence the choice of selling method. For example an older building with a large land size will benefit from an auction to leverage its rare offering.
- Vendor's Circumstances: The vendor's financial needs, timeline for sale and willingness to handle negotiations can dictate the preferred selling method. Urgency might favour an auction while convenience might lean towards a fixed price.
- Market Conditions: The current state of the real estate market and whether it favours buyers or sellers greatly impacts the effectiveness of each selling method. In a competitive market auctions can drive up prices, whereas in a slower market fixed price can attract more cautious buyers.
There is no one size fits all answer for the best way to sell a property. It's essential for vendors to work with their real estate agent to assess their specific circumstances, understand the dynamics of their local market, the current economic climate and the unique features of their property. To find your closest Century 21 agent, visit https://www.century21.co.nz/our-team