A New and Old Way To Sell
A NEW AND OLD WAY TO SELL
My monthly Property Wizard newsletters called “Informed Confusion” are designed to unconfused real estate information into ideas to help you make personal decisions regarding buying and selling barrier island real estate. Let’s discuss two selling methods; auctions vs traditional listings. Then a combination of the two methods.
The Auction method of sale is based on an intensive promotional campaign over a specified period where the agent attempts to attract the attention of the largest number of the 'target' audience who will enter competitive bidding for the property on the day of auction - more competition means a higher price and better conditions. When the property is sold at auction, the buyer does not have a 'cooling off' period - a deposit is paid, and the seller is legally obligated to close on the date specified in the auction conditions.
However, using the Auction method, the property can also be sold prior to auction if an attractive offer is received, or after the auction as the agent negotiates with interested buyers. An important component of the Auction is the 'reserve price' which is the lowest price that the seller will accept on the day of auction - this price is generally established on the day before or on the day of auction in consultation with the agent based on feedback and interest received during the promotional campaign.
- Focus is solely on your property.
- Generates the property's true market value with no upside price point limitation.
- Auction provides a competitive atmosphere to promote and enhance buyers interest and final sales price.
- Seller pays No Commission. Buyer pays. It’s called a “buyer’s premium”.
- A sale date is dictated by the seller - results in 30 to 60 days.
- Property is sold "As-Is".
- Property is sold without contingencies.
- Closing rate high with auctions due to the large non-refundable deposit required by buyer.
TRADITIONAL LISTING METHOD
- Your property can be one of many advertised.
- Upside price potential is limited. No chance to negotiate up, just down.
- A price reduction is typically needed to create buyer interest with a listed property.
- Traditional listing commissions range from 5-10%
- A sale date is unknown - property can become stale on the market for months or even years - if it sells at all.
- Property is typically scrutinized by appraisers, pest control firms, home inspections companies, etc.
- Contingencies are common with traditional listings.
- Closings can be terminated or delayed with many properties because the deposit is too low and easily refundable. There is a way to combine the best of both selling methods to maximize your price without paying a commission. Best for high end properties. Contact me for more. All the best, Jim “property wizard” Beggins CENTURY 21Beggins Enterprises, with 13 offices and 400 agents serving Pinellas, Hillsborough, Manatee and Sarasota Counties. Since most opinions about real estate can be supported with facts. I will inform you to the best of my ability so you can unconfuse the facts to your personal advantage. I think I can use my “hands on” experience in Florida real estate since 1970 to achieve your desired outcome. Please let me know how I’m doing. mailto:firstname.lastname@example.org 254 8144 Cell. Call, text or email with any questions.