The selling strategy that will deliver the best outcome

Firstly, What are auction clearance rates and why shouldn’t you rely on them when choosing a sale strategy?

Public Auction

Positives

  • Perceived competition
  • Drama and theatre on the day
  • Defined date for sale
  • Unconditional contract
  • Structured selling process
  • Transparency-makes the invisible visible to seller
  • Great for Agents profile
  • 3 step process: 1- Pre-auction 2- Auction 3- Private Treaty
  • Visual Market feedback (Public)

Negatives

  • Comparative rather competitive
  • Being reliant on the day, putting all your eggs in one basket
  • Auction clearance rates can fluctuate
  • Limited buyer pool
  • Very stressful process
  • The transparency in the process is great for buyers
  • Cost
  • The passed in price at auction is visible to all buyers, including vendor bids
  • Pressure to lower reserve price pre auction and on the day.

Silent Auction

Positives

  • No digital footprint if it fails
  • Competitive not comparative
  • One on one negotiations with buyers
  • Defined date of sale
  • Less transparent negotiation
  • All Public Auction conditions are applicable to a Silent Auction
  • Visible market feedback
  • Manageable marketing campaign costs
  • Structured selling process
  • 3 step process: 1- Pre-auction 2- Auction 3- Private Treaty

Negatives

  • Not a transparent process to buyers
  • The lack of drama and theatre on the day
  • Brisbane Auction clearance rates
  • May repel some buyers who cannot buy under auction conditions

Private Treaty

Positives

  • Opportunity to explore prices by inverting the auction process
  • With a skilled negotiator who is able to negotiate one on one with buyers
  • Can be low cost
  • Low pressure/ less stress
  • Competitive and not comparative
  • Attracts a larger pool of buyers
  • Control to the seller
  • Plays on scarcity and emotions to motivate the buyer

Negatives

  • Price only comes down in a private treaty sale
  • Poor negotiator
  • No deadline or pressure on buyers