All methods of sale work. Some sales methods will work better for your property than others. Selecting the right method of sale for your home is dependent on three things;
- The current state of the local property market. As Wellington is a city made up of public servants, consultants and educators, the government can have a large impact on the employment numbers. Confidence in these sectors is directly reflected in property demand and vice versa. Some methods, such as Auction or Tender, will be more effective in a market with high demand for property. In more balanced and slower markets it would be best to consider using methods which give buyers an indication of price. This could be in the form of a buyer enquiry level (BEO), RV if relevant, or fixed price.
- The style of property, be it a standalone home, townhouse or apartment. For example, a standalone home will attract more interest than a two bedroom apartment. ‘No price’ marketing methods such as ‘Tender’ or ‘Auction’ will attract buyers and encourage them to place their own value on the property. This is the opposite of apartment buyers who tend to shop with price in mind purely because of the oversupply or similar properties to choose from. Marketing an apartment with no price guideline would likely limit the number of parties viewing, and subsequently offering, on the property.
- The target market for your home. Using the right sales and advertising methods to attract your target market is essential. For example, first home buyers tend to search for property online and register to receive alerts on properties meeting their criteria. They will shy away from competitive situations such as auction and place a lot of value in having building and LIM reports provided. High value properties will attract experienced home buyers who will search via online and print media channels. These buyers are savvy and more inclined to seek their own professional advice. For the right property, methods of sale which put buyers in competition with each other such as tender and auction, can produce excellent results.
Many agents have a preference for one method over another. We, however, believe it is important to choose the sales method best suited to your home and to have a backup sales plan in place.