14 June, 2023 / Category: Blog
When selling your property in Melbourne, selecting the right sales strategy that aligns with your goals and engages potential buyers effectively is essential to achieving the highest price and best sales terms. While auctions are a popular sales method, particularly in Melbourne, conducting thorough research is critical to determine if it is the best choice for your property.
The best method of sale for your property will depend on factors such as the property type, location, market conditions, available time frame, and your preference. Before selecting a sales method, it’s imperative to understand the advantages and disadvantages of each option.
An auction involves a public sale conducted by an auctioneer. The property is advertised with a specific time, date, and location. Prospective buyers participate in competitive bidding, and if the property reaches the reserve price, it is sold to the highest bidder.
Advantages: The potential for competitive tension among buyers, a transparent bidding process, a quick sale, no cooling-off period, and the contract is usually unconditional.
Disadvantages: The vendor needs to pay for the campaign marketing costs without any sale guarantee, the buying process is consolidated into a short period, and the market value is decided on
Off-market sales occur when a property is not publicly listed but is available for purchase. This option is suitable for those seeking privacy, limited marketing exposure, or seeking opportunities for negotiation with interested parties directly.
Advantages: Vendors can take their time and wait for the right buyer to come along, there are no marketing costs, and in some cases, a quick sale can be achieved as there is no campaign period.
Disadvantages: There is a cooling-off period for buyers, and buyers can negotiate on all terms within the contract (price, settlement terms, deposit amount etc.).
In a private sale, the property is advertised, and interested buyers make offers. Negotiations take place between buyer and seller (sometimes multiple buyers) with the assistance of a real estate agent. This is useful for properties where the vendor wants to maintain privacy, allowing the real estate agent to be selective about who inspects the property. This strategy is also often adopted if the property has been passed at auction.
Advantages: It allows for greater privacy for the vendor and the property, and there is no specific date for the real estate agent to find the right buyer.
Disadvantages: The sale price is negotiable, the contract may have conditions such as finance approval or building inspections, and buyers will have a cooling-off period. It can take a longer time to reach a result.
EXPRESSIONS OF INTEREST (EOI):
An EOI campaign is often used for high-end or unique properties. The agent sets a deadline by which interested buyers submit their offers along with the conditions. The vendor and the agent review the submissions confidentially to determine the winning offer. Typically, if there are two or three offers at a similar level, it may turn into a bidding war or boardroom auction.
Advantages: The vendor can maintain privacy, encourage potential buyers to offer a higher price, and choose the offer that best suits them.
Disadvantages: Creating competitive tension between buyers can take more work, and having the right property advisor is essential. This method can confuse buyers, so it’s vital that there is a transparent process in place and that buyers are aware of how things will transpire as it may differ from agent to agent.
You must first understand the property’s value and target market to ensure your sales campaign has the right strategic foundations and the most effective sales strategy.
Property Value: You will need to understand the actual value of your property to set a reasonable price. Avoid underpricing or overpricing, as both can have drawbacks.
Target Market: The type of buyer and how many people are likely to be interested will also influence your choice of sales strategy. For example, a property with broad appeal will do better under auction conditions than a high-end property where only a few buyers can afford it.
Vendor Needs: The selected sales strategy is influenced by the vendor’s needs. For example, auction scenarios can be helpful when the property is a deceased estate or part of a divorce settlement, as it can be challenging to agree on a price in these situations. Alternatively, a vendor in financial hardship may prefer to sell off-market in a quick sale where they don’t need to pay for marketing.
Once all the aspects of the sale are apparent, you can select a suitable method of sale. It is important to remember that only some properties are suited to specific sales methods. Some do well at auctions but not at private sales, and vice versa. The right advice will ensure you get the best result for your property.
The role of a vendor advocate is to assist individuals selling their properties, particularly those located overseas, in another state, landlords with tenants, or individuals with busy schedules. Vendor advocates act as intermediaries between the property owner and real estate agents, eliminating the need for the property owner to deal directly with agents.
When you enlist a vendor advocate, they handle all aspects of the property sale process, alleviating stress and workload for the vendor. They aim to secure your property’s best possible sale price by providing the best advice.
Contrary to popular belief, vendor advocates are not necessarily expensive. They typically share the fee charged by the real estate agent, meaning your out-of-pocket costs remain the same, but you benefit from the expertise of two independent professionals for the price of one.
By leveraging their expertise, you can maximise the potential of your property sale and achieve the best possible outcome.
Infolio offers comprehensive services for both buying and selling properties. An Infolio vendor advocate will act on your behalf to prepare your property for sale, educate you on your property’s value and the local market, assist you in choosing the correct sales method and select and manage the best real estate agent for your property.
As your vendor advocate, we aim to take the angst out of selling your property and secure the highest possible sale price. The best part? There are no fees directly payable to Infolio from our clients. So, why choose Infolio to be your vendor advocate?
Expert Advice: As your vendor advocate, Infolio will provide valuable guidance on property presentation, styling, sales strategies, and agent selection to achieve your sales goals.
Extensive Market Access: Infolio specialises in accessing both on-market and off-market properties, ensuring we understand what properties are for sale in your area and how much they are selling for.
Area Specialists: we pride ourselves on our deep knowledge and connections in our specialist areas. Our long relationships with local real estate agents and our understanding of past and future sales in these areas mean we are best placed to provide you with strategic advice for selling your property.
Skilled Negotiation: We pride ourselves on our professional negotiation skills, honed through decades of experience in the real estate industry. We will negotiate the best value from your real estate agent, ensuring they are highly motivated to get you the best price but not overpaid. When it comes time to negotiate with a potential purchaser, we will be there with you for every step, ensuring the best result for you and your property.
Communication: An Infolio vendor advocate will maintain regular contact with you, providing updates and recommendations based on the progress of the sale, allowing for complete transparency about the campaign’s progress.
To explore how Infolio can assist you in a successful property sale, contact us today to set up a free 15-minute discovery call and learn how we can help you maximise the sales result for your property.