BEGINNER’S GUIDE: Everything you need to know about the 5 main sale methods

sale methods property

There are five types of sale that are most commonly used today: auction, deadline, tender, price by negotiation and fixed price.

Each method has its benefits and there are various reasons why one might be the best choice for you.

So let’s jump right in…

 

Auction

Auction is arguably the best way to achieve a premium price with cash unconditional offers in a short timeframe.

 

buying-selling-property-auction

 

  • A short, intensive marketing campaign without a stated price.
  • You set the terms, conditions and auction date.
  • Offers are made through open public negotiation on the auction date.
  • You can choose to accept a pre-auction offer.
  • Offers must be cash unconditional.
  • Generates a sense of urgency among buyers.

 

Deadline treaty

With deadline sales, there is a deadline date set by which time all offers must be made. They are similar to auctions in that the price is withheld and the deadline puts pressure on buyers, which helps achieve a premium price. The main differences are that offers are confidential, you have more time to consider offers, you gain the ability to negotiate with buyers and you can accept conditional offers.

 

deadline sale

 

  • A short, intensive marketing campaign without a stated price.
  • You set the terms, conditions and deadline.
  • Offers are confidential and must be made by the deadline date.
  • The seller may state that prior offers will be considered: if so, they retain the right to accept an offer at any time.
  • Offers may be conditional.
  • Particularly suitable for property sales whereby a number of parties must be consulted e.g. owned by a trust or deceased estate or whereby buyers would have to carry out due diligence.

 

Tender

Tender is very similar to a deadline sale: the main difference is that you are unable to accept offers prior to the deadline date. You still have the ability to negotiate with buyers and you can achieve a premium price due to withholding a price and setting a deadline.

 

auction sale

 

  • A short, intensive marketing campaign without a stated price.
  • You set the terms, conditions and deadline.
  • Offers are confidential and must be made by the deadline date.
  • Offers may be conditional.
  • Particularly suitable for property sales whereby a number of parties must be consulted e.g. owned by a trust or deceased estate or whereby buyers would have to carry out due diligence.

 

Price by negotiation

With this type of sale, the property is marketed with no price which encourages buyers to offer what they believe your home is worth. You have the ability to negotiate with buyers and accept conditional offers, and no deadline date is set.

 

price by negotiation sale

 

  • An extended marketing campaign without a stated price.
  • Marketed without a deadline.
  • Offers are confidential.
  • Offers may be conditional.

 

Fixed price

With a fixed price campaign, the price is stated on advertising and there is no deadline by which the property has to be sold. Buyers can feel encouraged to make offers as they know the price at which you are willing to sell.

 

sale methods

 

  • An extended marketing campaign with a definite asking price.
  • Marketed without a deadline.
  • Offers are confidential.
  • Offers may be conditional.
  • Can result in multiple offer situations if priced accurately.
  • Allows buyers to search by price range on real estate websites.

 

This article is meant as guidance only. We recommend consulting your local real estate salesperson for clarification or more detail on these sale methods.

So feel free to get in touch with us if you’d like more help or information.