This method of sale can be applied in any of these three ways:
1. No price is advertised, like an auction, but without an auction plan. Buyers make offers through the sales consultant, as in exclusive agencies.
2. A minimum price may be advertised. Offers above this minimum price are considered by the seller.
3. A price range may be advertised e.g. $170,000 -$195,000. Offers within this price band are considered by the seller.
Benefits to the seller
· If they choose, a high profile marketing programme puts the `spotlight' on the property adding a competitive edge that strongly favours the seller.
· You do not overprice or undersell the property; instead you let the market and individual buyers determine the value.
· The `no price' aspect will attract more genuinely interested, cash-in-the-hand buyers.
· The level of market interest will help the seller gauge a fair sale price, with the real possibility of achieving a premium price.
· Flexibility in marketing - e.g. the seller may start off with no price like an auction, gather market information and feedback, and if the property is not sold within the first two to three weeks put a minimum price range or a fixed price on it, or convert to an auction.
Disadvantages to the seller
· Unlike auction and tender there is no sale date or deadline in place so there is no urgency placed on buyers to make a buying decision.
Benefits to the buyers
· As their Harcourts sales consultant you can help them get a good feel for the local market before they put an offer in, and educate them through the 'buyer's interview'.
· They can submit an offer for consideration at any time, and it does not always have to be cash.
· A price range may make it easier for buyers to determine if the property is within reach.
Benefits to the sales consultant
· Eliminating a set price may remove barriers to inspection.
· A property can't be considered over-priced.