Selling Methods

What is the best way to sell a Rural or Lifestyle Property? sold_sign_green_larger

Our firm view is the “best” method of sale will vary from property to property and vendor to vendor. There really is no ‘one-size-fits-all’ approach.

In fact you will see on our website today properties for sale at a Fixed Price, by Tender, by Auction and By Negotiation. The key points around each method of sale are noted below. At the time of listing your property for sale we will discuss each method and together decide on that method which best suits the property and your unique situation.

Fixed Price

The benefits of sale by this process are:

  • An asking price is placed on the property;
  • It encourages both conditional and unconditional offers;
  • There is no time pressure on vendors or purchasers; and
  • There is a benefit to purchasers as they are aware of the vendors expectations.
Tender or Deadline Treaty
  • It sets a specific time frame which allows purchasers time to carry out their due diligence and then make a formal offer;
  • Maximises competition among potential purchasers
  • No one can say it’s to dear – we call it bottom up pricing rather than the usual method of top down ( i.e. setting an Asking price and then negotiating downwards)
  • It provides flexibility for the vendor to countersign the preferred offer should the terms or price not be quite where they want to be;
  • It encourages tenderers to complete due diligence and have finance in place, reducing the time delay between acceptance and settlement; and
  • The tender process requires purchasers to submit on the vendor’s pre-determined terms and conditions;
  • Most Tenders have a “Tender Acceptance” period of 5-7 working days after tenders close. During this period no Tender can be removed from the process and the Owner(s) have that time to make an unhurried decision on whether to accept or further negotiate with any of the tenderers;
  • For the above reason Tender is often the preferred method where more than one party is involved in the decision making process such as family estates or farming Companies
  • Owners retain full control throughout – no price is disclosed to the market
Auction
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Farm SOLD by Auction for $3.650,000

  • This is a highly effective way of creating buyer competition to ensure that the best possible price is achieved;
  • It places a time frame (usually over a four to five week period) on the sale.
  • This in turn instils urgency into the minds of prospective purchasers and allows the vendor to determine the terms and conditions;
  • Purchasers are competing to own – each may have a different reason/driver for that
  • If there is a Premium price available for the property, a sale at Auction is one of the few ways to extract that
  • The Owner is protected by a Reserve price on Auction Day – the auctioneer cannot sell below that price
  • When a property is sold at auction, the sale is unconditional, a 10% deposit is paid, and a settlement date is pre-determined;
  • It is the only way of creating open, transparent competition between potential purchasers to drive the price upwards;
  • If a property does not sell under the hammer, it can still sell afterwards to one of the parties identified during the marketing process
Offers Invited

This method sets a specific time frame within which purchasers must express their interest in purchasing the property. The time frame associated with this form of sale helps to keep purchasers very focused.

  • The main difference between “Offers on or before (a date)” and a tender campaign is that an offer can be presented and agreement can be reached prior to the closing date if an acceptable offer is made.
  • A marketing campaign can be structured around a set schedule; and
  • It encourages any offers to have due diligence completed prior to submitting an offer.
  • This allows the vendor to choose which preferred party they wish to deal with and, via the conditions of sale;
  • As with Tender or Auction, the vendor remains in control at all times.
  • Offers may contain terms and conditions which include a settlement date to suit your requirements.