Methods of Sale - Open and Exclusive Agency
Open Listing
The property is put on the market with more than one agent and the owner retains the option of selling privately. A fixed price is usually adopted and buyers make offers to purchase the property beneath this amount.
The disadvantages with open listings are numerous. They rarely sell, with an average success rate of only 30% and they take much longer to sell as no deadline is set for buyers. For owners, there is very little security or consistency of feedback as there is no single agent in control of all inspections and in touch with all the buyers.
Open listings receive very little attention from agents as there is no guarantee that an agent's efforts will be rewarded. As a result, open listings can become neglected and stale, reducing the eventual sale price. Finally, open listings sell for lower prices because no agent is committed to achieving the premium price. Since agents know that open listings might be sold by competing agents, they will usually attempt to convince owners to sell for whatever price the agent is able to get the potential buyer to offer rather than setting out to achieve the highest price possible.
We do not recommend the open listing method of sale.
Exclusive Agency
Properties listed by exclusive agency are entrusted with a single marketing agent. A fixed price or price range is usually adopted; however listings may also be sold without a price indication or "by negotiation".
Exclusive listings enjoy a much better chance of selling than open listings with a much higher success rate and do not take as long to sell. There is still, however, no deadline for buyers and this can result in the property becoming stale.
We welcome other agents within the area to participate in the selling of your property. This makes sure all buyers have the property presented to them.
Owners enjoy an enhanced level of security and agent feedback with exclusive listings as there is only one agent and one key, and we personally attend all inspections. Finally there is a much higher level of agent commitment for exclusive listings, since the agent's position is secured. This enables the agent to focus on achieving the premium price for the property, rather than merely achieving a sale at any price.
We recommend the exclusive method of sale.
Auctions
The Auction option is extremely popular and is by far the most successful method of sale. It's also the least disruptive and intrusive method because you only need to open your home at times which suit you best, plus your property will be on the market for the shortest period of time feasible - on average just 30 days!
You will remain in total control of the whole process too. You will set the terms, conditions, auction deadline and also agree on the minimum reserve price that you are comfortable with. With your input, a professional marketing plan will be put in place which will ensure that your property gains maximum profile within those crucial first few weeks of exposure to the market.
Auction is designed to attract genuinely interested, cash-in-hand buyers who will be focused on establishing the maximum price they are prepared to pay for your property, not how low their offer should be. On auction day, they will be emotionally committed to purchasing as they actively compete against each other. If a buyer reaches their limit they may go beyond it for fear of losing out, combined with renewed confidence in the property's value provided by the other bidders. And because your reserve price is confidential and remains undisclosed, your property can't be sold for less than you are prepared to sell for.
The auction is a "Three Phase System" = Unrivalled Success!
Phase 1 - Pre-auction sale and marketing campaign (approximately 36% of auctions sell here)
Phase 2 - Auction Day sale - under the hammer (approximately 18% of auctions sell here)
Phase 3 - Post-auction sale and marketing campaign (approximately 43% of auctions sell here)
Success Rate of Each Method of Sale
|
Method of Sale |
% Sold within 60 days |
% Sold within 10% of asking price |
Owner satisfaction with Agent |
|
Open Listing |
40% |
58% |
72% |
|
Exclusive Listing |
78% |
88% |
88% |
|
Auction |
85% |
92% |
92% |
Average Days on Market for each Method of Sale
|
Method of Sale |
Days on Market |
|
Open Listing |
54 - 96 |
|
Exclusive Listing |
21 - 52 |
|
Auction |
21 - 43 |