Why you should market your house with a price
It’s always a hard decision deciding the best way to sell your house. Trying to determine which method will get you the most return. Auction. Price. Or other. There’s no right or wrong answer. It all depends on the market and the particular nuances of your property.
Real estate agents will always have an opinion. I'm no different. And right now, in this market, if your house value is around or under the $600k mark, I think it's a good time to market with a price.
Firstly, think about your likely buyers
In the sub $600k category, many of these will be first home buyers. And first home buyers are better suited to a price (or price guideline) than they are to an auction.
- It means they can secure the property first and then do their due diligence. With an auction, you have to do all this first with no guarantee of winning the auction. First home buyers don't have the luxury of paying for reports (which can add up to serious dollars) with no certainty of securing a purchase.
- As well as enabling conditional offers, priced properties will also attract unconditional buyers. Listing with a price (or price range) makes it easier for the buyer to negotiate a sale and helps to ensure that your property only attracts buyers who are willing to offer the price that you are asking.
- Because you're making it easier for your target buyers to negotiate with you, you'll likely get more of them. Opening up the opportunity for multiple offers, with each one pushing up the price and/or improving the conditions.
- First home buyers are more likely to be able to use their KiwiSaver funds (often this is not possible with auctions)
Secondly, look at the market conditions
When the market is hot, auctions are great because they increase competition and urgency. But at the moment, the frenzy isn't quite there, so people are being more astute with their purchasing decisions and they're not prepared to endure the pressure of an auction. You'll notice that houses are not selling at auction at the same rates as they were a couple of years ago, it's a cyclical thing.
In the end, the choice is yours
Before deciding on the best approach for your property, do your research. Look at how other properties similar to yours are being marketed. Talk to a few real estate agents about their proposed approach. Attend some auctions and open homes to get a feel for interest.
And, I know I'm biassed. But in the end, whether you sell via auction, list price, tender or other the secret to your success lies in choosing the right agent. Someone who'll do the best job at marketing your home and negotiating with your buyers.
Here are a couple of other articles that may be of interest to you. What do buyers really want? and Is bigger better when it comes to real estate companies?
Rodney Fong is a Licensed Salesperson and Auctioneer working with clients throughout Tauranga, Mt Maunganui and Papamoa.< Back to Blog Articles