When it comes to selling your home, there are five common methods of arriving at a price in Western Australia. Each of these has its own advantages depending on the nature of your home and the prevailing market conditions so we recommend consulting with Verse Property to decide the best option to secure the best price.
Sale by Private Treaty (“For Sale”)
Sale by Private Treaty means that you set a price at which your property is to be marketed to the public through the marketing plan agreed to by you and the agent.
Auction is a method of selling property through public negotiations by way of an intense campaign based marketing strategy with a set date of sale. The campaign is over a 3-4 week period and is an excellent method for creating maximum exposure to the home and driving the price up through healthy bidding from the greater market. A successful campaign is one where the price for the home exceeds market value and sometimes exceeds the owners expectations.
Auction is one of the few methods of sale where both the seller and buyer are working towards a set date for the sale of the property. One of the benefits to the seller is that the offers are unconditional and settlement is generally 60 days from the fall of the hammer.
e.g. From $300,000
"From Pricing" has become increasingly popular as a selling method because of its ability to create a sense of urgency and create multiple buyer interest. While there is no advertised ceiling price, there is a " target price " that the sellers may be chasing and the buyer can make an offer by starting above the " From Price" and negotiate a price that may fall somewhere between the advertised from price and the sellers target price.
e.g. Fixed $300,000
The “Fixed Price” system is the most traditional of all selling methods as it offers a clear guide to buyers the seller's price expectation. While the seller has outlined their desired price, the buyer can make an offer and the seller can negotiate the offer. Like all other methods, the offer can be accepted by the seller if the price and conditions meet their expectations.
Expressions of Interest
The ‘Expression of Interest’ method is a campaign based marketing strategy that is conducted over a specific time period , usually three weeks. The success of this method is concentrated on the " buyers over enquiry price " which is set below the market value, so as to create a sense of urgency and promote strong buyer interest. During the three week marketing period, it is not uncommon for the seller to have 4-6 written offers for consideration on the closing date. The competitve nature of this method ensure that buyers make their offers as attractive as possible by way of price and conditions.
e.g. Price range $400,000 - $420,000
A set of goal posts are created, being the price range, to attract as many possible buyers. The buyers are made to understand that offers only within the range will be considered by the sellers. This method opens up the market for buyers with a wider budget and the invitation is there for the buyer to negotiate within the parameters of the price range. The more buyers there are looking within that budget, the more potential offers the seller has an opportunity to consider and the better outcome of the price.