Best way to sell your home? It pays to pay attention to market trends
How best to sell a residential, lifestyle or rural property can change as the market rises and falls.
Marlborough’s property market has recently trended towards offering property with no price attached. Vendors have benefited with some extremely good outcomes, though some buyers have been frustrated.
Competition is the key to making a good sale. As a salesperson, identifying or creating competition helps achieve the best possible price for a property. However, you also need to gauge how much competition is realistic, based on market trends.
Residential property, lifestyle blocks, vineyards and rural properties are traditionally offered to the market by auction, through a tender process, by deadline private treaty, or through a conventional fixed price private treaty process.
This property in Rowberrys Rd, east of Blenheim, is being sold by deadline sale by PGG Wrightson.
Run well, auctions contain plenty of excitement. They are a form of theatre, giving the vendor three opportunities to sell: before the auction; through the auction itself under the hammer; or if the reserve is unmet, after the auction when motivated buyers have identified themselves and negotiating terms becomes easier.
As a vendor, on a good day, with two or more willing buyers battling it out, an auction can give you a price well above expectations.
However, an auction is a public process. Some prefer not to do important business in public: giving the neighbours an insight into a treasured property that may have been in the family for generations does not suit everyone.
In these instances, selling by tender could be preferred, also creating competition under a deadline, though via a confidential process.
Setting a tender date creates purpose and concentrates the market; purchasers indicate what they will pay, lodging a deposit to bid what they deem appropriate. After the tender closes, the vendor can accept any offer, or none, and not necessarily the highest.
Under a deadline private treaty, buyers are encouraged to demonstrate some urgency, though are able to include clauses in their offers such as finance approval, or the sale of another property. While the vendor need not necessarily accept any offer, it may form the basis for ongoing negotiations after the deadline.
With a conventional private treaty sale, the vendor engages with the market in an open manner, seeking to identify buyers by putting a price on the property.
Recently, as the Marlborough market tightened and buyers have become reluctant to commit, more properties have been offered with a price, whereas no price marketing can work better when competition among buyers is more intense.
PGG Wrightson Real Estate has used the deadline sale process to great effect in recent months. Despite the introduction of the bright line test and changing bank lending rules, competition remains strong on a reduced number of listings.
Generally we are able to present three or four offers on each property, although sometimes up to 10 offers come forward. This inevitably leads some buyers to frustration, though is balanced by a great result for the vendor.
If you are considering selling, we strongly recommend working with an agent with a good track record of sales and integrity, while also seeking professional advice from your solicitor and accountant. It is a team effort.
Joe Blakiston is the sales manager for PGG Wrightson Real Estate in Marlborough.