Now a day’s it seems that more and more people think that if a property does not sell with in a certain time frame, that the agent is most likely at fault. It is almost like society feels there is a scientific formula and that if not followed correctly every time, then it will fail. In most cases it is not relative to an agents actions but rather relative to current buyers and vendors motivations, needs and opinions at the time.
In Melbourne there is a culture for two main ways to sell a residential property, private sale or auction. Melbourne is most commonly known for its auction culture.
An auction campaign runs for a 4-week period in which the auction is held on the 4th weekend. This style of campaign is only suggested if you can create good competition during the campaign. If your agent is unable to get two or more buyers to bid at your auction, then this style is not for you.
Auction campaigns are expensive, and its marketing spend should average between $7,000 to $13,000. This campaign spend is necessary to drive as many people through the property in the first 3 weeks in order to have a competitive auction in your final weekend. However, even then you still have 30% chance of not selling at auction under the hammer in today’s current market.
On the other hand a private sale campaign is less expensive and normally less risky than an auction. Normally a private sale campaign runs for longer than 4 weeks due to a smaller marketing budget and fewer buyers coming through each open.
An agent must be a skilled negotiator to achieve the best possible price with this style. In order to extract the best price from him or her, the agent must ensure a strong relationship is built with each and every buyer. If the buyer has any doubt in their mind as to what the agent is saying the more resistant they will be to offer their best price.
The industry suggest that all residential property should be sold exactly the same way each and every time, as if there were a scientific formula. Although there are only 2 main styles most commonly used to sell residential property, still each campaign will depend on the current buyers and vendors motivations, needs and opinions, which will affect how the campaign will eventuate.
With these variables in mind, next time you sell a property and things don’t work out exactly how you expected, don’t worry. If you have a persistent and experienced agent, there is no doubt they will find the right buyer for your property.