WHAT ARE THE OPTIONS OF SALE TO DISCUSS WITH YOUR AGENT?
When you are ready to sell your first call should be to TopNotch Agents NZ Ltd who will, for no charge, identify for you the ideal experienced and very successful Agent who works your area to market your property. Remember, we are NOT Real Estate agents, we are Referral Agents and totally independent to select who we feel is the right agent for you, no matter which Company that Agent belongs to. And don’t forget our Cash Reward to you when your property sells.
Once that agent has been identified, there are several questions you will want your chosen Agent to answer for you.
Firstly, what type of sale should your property be most suited for.
The Agent will probably tell you:-
With this type of sale, you put on a finishing date. As the Deadline date for offers. There is no price stated, and buyers can offer as little or as much as they feel they wish to invest in the property.
A seller does not have to accept any offer if they wish not to, and although a Tender is similar, a Deadline Sale is much easier to handle.
Deadline sales have a lot going for them. A seller may give a guide of what they are expecting to receive offers around, and your Agent may give you some guidance but very limited, such as offers should begin with a 4 and so on. But even an offer at the top end of the guide does not force the seller to accept that offer. Likewise, a buyer can withdraw their offer before the seller accepts it. For the vendor to accept an offer prior to deadline date the listing must include the words Unless sold prior.
FOR SALE IN THE CLASSIC MANNER
Many years, vendors put a price on their property which was advertised to prospective buyers, and everyone knew where they stood. The price was either within a buyer’s price bracket or it was not.
Most of these ideas and ways of marketing your property have only surfaced over the past couple of years, and buyers need to learn the rules of each if they are to get the best chance of winning their dream property through any method other than Classic selling.
FOR SALE BY NEGOTITION
This method of sale is often used when the price of a property is hard to estimate. An end date to Negotiation Sale is given, and again buyers need to put their best offer forward. Some Vendors give a form and to price, such as from $400,000 to $475,000 but it does not stop a would -be buyer offering say $390,000 or $485,000. Again a vendor may accept one or none of the offers given. With a Sale by Negotiation you can put in any clauses, conditions or stipulations you wish, though remember, the Vendor is looking for the best offer, not just the best price.
The above methods are all completed on a normal sale and purchase agreement.
SALE BY TENDER
This method is again putting your best offer forward to the vendor (seller). You need to read the terms of the Tender carefully. Is it a closed tender or an open tender? With an open tender, you are at liberty to make an offer any time prior to closing date. However, if someone else does this, make sure you have already told your Agent of your interest in the property. As you will then be invited to submit your offer early too.
With a closed tender the Tender must run the full length till the closing date.
You are not told the price offered by the possible other buyer, and the Vendor is free to accept any offer or none. You may see the words “The Highest or any tender may not necessarily be accepted”
Selling by Tender has a deadline date and no price guide. Buyers need to research other properties in the area and make their price offer based on what they feel the can comfortably afford. A fair price for what they consider the property is worth to them.
If the Tender is a closed tender and once the tender has reached the closing day, the Vendor has a set number of days. (read the terms of Tender) To either choose an offer or not. They are also at liberty, to negotiate with a buyer on the price offered. Settlement date or any other condition either buyer or seller need to agree on. In this method the Buyer needs to ensure the offer is the best he can do, as there is no guarantee someone else has not offered more or given more favourable terms to the vendor.
SELLING BY AUCTION
This method is a quick- fire method of selling but could be more expensive with Agents looking for larger than normal contributions towards the advertising of the Auction. Properties with a special sort- after features often do well at an Auction sale.
The Vendor though must endure many open homes, and the anxiety of those can take its toll. Wondering whether or not the house will sell on Auction Day. It is for this reason many Vendors add “ Unless sold prior” to their listing. Which gives a buyer a chance to make an offer prior to Auction day. If such offers are made, and not accepted all interested parties must wait for Auction Day to cast their bid.
Once the auctioneer has discussed with the vendor the reserve price ( the least the vendor will take for the property) the Auctioneer will start the bidding close to that. Emotions take over at an Auction and if you are lucky enough to get 2 or 3 bidders desperate to own your property you could see the price go far higher than reserve.
The latter 2 methods of selling require a different agreement to the first 3.
I hope you have enjoyed reading this. I have written it giving basic information on each method.
Before committing to any one method, it is important you ask your Agent or Solicitor to explain the pros ad cons of each before committing yourself to any one of the 5 methods I have focused on.
For any information on TopNotch Agents NZ Ltd or this article please phone 0800 355 655 or write anne@topnotchagents,co,nz