The market is booming at the moment, homes are selling for very good prices and there are buyers racing to see homes. The question is, how can you as a home owner take advantage of this and make the most out of the sale of your home.
Lets look at some of the traditional methods of sale. First, private treaty, no doubt a method that has been the most commonly used in our area up until a few years ago, the typical scenario is that an asking price is placed on the property and negotiations go from there, simple right? The problem is that some agents have taken this method and used it to “play games” with buyers, sure it can work in your favour as a seller, but can you be sure that the buyers arent also “playing games” with your agent, is your agents negotiation skills good enough, or what if you only have one buyer interested. Which leads me to our second method of sale, Public Auction.
Public Auction has very quickly become the most popular method to sell homes in the Sutherland Shire, but is it the most effective?
The evidence is very clear, some buyers will simply dismiss a public auction and will not even look at the home simply because they do not want to have to bid at an auction, remember that some buyers are very private people, they dont necessarily want to be screaming out figures in front of what could potentially be their new neighbours. But from an agents perspective, If I was to auction a home, I could not gaurantee to my client that the highest bidder is paying the most they possibly could.
Lets look at an example, there are two bidders at a public auction, bidder one can pay up to $800,000 and bidder two can pay up to $850,000, when the bidding stops at $801,000 and the property sells, the owner has missed out on $49,000 dollars that the buyer would have paid! This is because public auction bidding is comparative, instead of focusing on the home they want to buy, they focus on what someone else will pay for it.
Which takes us to the third method of sale, Silent Auction. McDonald Partners are the Sutherland Shires Silent Auction Specialists. By using a method where we ask buyers to make their one and only highest silent bid, its not disclosed to others and its not limited to a certain amount of buyers, what this means is that all parties interested have to make an offer of their walkaway price, unlike private treaty where agents will go back and forth and “play games” and unlike a public auction where the highest price isnt necesssarily the highest price, a Silent Auction is the best method for all parties and is the only way an agent can guarantee owners get the highest price.
If you want more information about Silent Auctions and how they can benefit the sale of your home, call McDonald Partners today for a free consulation.
Written by Matthew Wigger