The two primary methods used in Marketing of Real Estate are; Auction and Listings. Each method accomplishes the goal, however each are very different in their application. Sellers should compare then choose the plan which best suits their personal needs. See examples.
Listing For Sale:
The first step is the most important. Setting a realistic asking price. Properties priced “Below Market” may indicate a problem with the property. It can also leave money on the table. However this is rare, most sellers are guilty of asking too much. Properties which are “Over Priced” hurt the marketing process and use up valuable time.
Sellers should set emotion aside; trust the facts. A market analyst of like kind, and location properties are your best indication of value.
Once the proper price has been determined, the property is ready to be placed on the market. This brings up the question, “Where is your market?” Most residential and rural land properties sell to buyers in the geographic area. However, some properties require a broader marketing area. Thus the internet and web sites and the ability to target your buyers through demographics. Today we use both local and internet advertising methods.
Seller beware; Offers are full of “Contingencies,” so carefully read and understand the offer before signing. Common contingencies are:
I will buy your house subject to:
Loan, Appraisal, Inspections, etc.
Our best advice is; Do Not Spend the Money until you have it in hand!
Things happen; not every offer/contract results in a closing.
Listing property for sale works well, it may take some time, but this is a proven and effective marketing method.
Auctions are possibly the most expeditious marketing method available.
There are several good reasons why sellers choose to sell by Auction.
- Time Factor. In most cases we can conduct the live Auction Sales event within 30 days after the Contract of Employment is signed.
- Closing normally requires 30 to 60 days.
- Sellers determine the game rules, terms and conditions.
- Properties may be sold in “As is condition.”
- We collect Non-Refundable Down Payment money; not earnest money, Big Difference; this is the glue that keeps deals together.
- Buyers help pay cost and fees.
- Offers are Not Subject to Contingencies.
- The most important fact is that Buyers compete for the right to buy. This process of bidding establishes the true price.
- There are two types of Auctions; Absolute and Reserve
An Absolute Auction requires the property sells to the High Bidder without a minimum or reserve price. This type Sale sends the message to Buyers; We are serious; come be serious with us bring your check book.
Reserve Auction requires a minimum acceptable price must be obtained. This type auction is often used because there is a debt on the property which must be paid in full.
Serious Sellers attract Serious Buyers; Serious Buyers Compete.
This is the “Key Factor” to marketing by auction.