Market Strategy

At Ray White Whangamata we understand that there is a lot more to selling your home than simply placing a 'For Sale' sign in front of your property.


AUCTION and TENDER
Generally used when the property is premium and/or the market is 'hot'. This is because the success of each is substantially dependent on there being multiple offers for the subject property. Otherwise, these processes are largely seen by the public as signals of desperation on the part of the vendor and this leads to the perception that a bargain is to be had.

In the right market atmosphere, with clear competitive bidding, the sale of property by Auction is widely recognized as the most effective and successful method of achieving a premium price for your property in the shortest possible time. The marketing concept for a Tender strategy is very similar except that both you and the purchaser can achieve a sale without the loss of confidentiality associated with a public auction.

Salient points:

• your property is marketed without a price in order to eliminate the possibility of both underselling and of creating a negative impact from being overpriced
• more particularly with Auction, the fixed sale date combined with an intense marketing campaign leading up to it show the buyers your commitment to sell
• with both Auction and Tender the sale contract is on your prior specified terms and conditions and for Auction it is wholly unconditional. Note that with a Tender the purchaser can impose their own conditions as well but that you may subsequently negotiate
• the auction/tender date creates a sense of urgency for the buyers yet allows them ample time to complete their own inquiries and research without pressure of missing out. It also allows them to arrange finance.

PRICE BY NEGOTIATION (PBN)
Often not successful because the first questions the public ask the salesperson are "how much does the vendor want" and "what is the property worth" so you may as well put a price on the property in the first place. Whether your property has attributes compatible with an Auction/Tender campaign or not but you don't wish to go through either process (due to any number of plausible reasons) then PBN would possibly be a suitable option - ideally in conjunction with a "closing date for all offers".


FIXED PRICE
In our experience the vast majority of buyers are most happy with this method of sale because, in their mind's eye, the vendor has stated a clear indication of their expectations. In most cases the public will negotiate from this price but the degree to which this happens varies according to a combination of

• their own prior conceptions about buying property
• movement in the market place during the marketing period
• the price - there have been a number of failed sales in Whangamata where too higher expectations on the part of the vendor have clearly dissuaded the buyers from entering the sales process.

The only time when fixed price marketing may not be plausible is when the market is rapidly fluctuating - in other words, when it is impossible to discern a realistic market price because in general prices are either increasing or decreasing quickly.


SOLE AGENCY
Generally for a term of 3 months listed with one company only. Other companies may introduce their buyers at any time, through us, on a split commission basis (this is dealt with internally and you only pay one commission to us, the listing company). Through sheer threat of losing the listing after 3 months we will be doing our utmost to put a "SOLD" on your property. It's that simple.
In other words, the main benefit of a sole agency is the obligation it places on the agent to provide a sale. The agent is bound to work harder to sell the property when the vendor places his confidence solely in that agent.


JOINT AGENCY
For a term of 3 months and listed with two companies only. Other companies may introduce their buyers at any time and through either listing company. Same policy regarding commission as with Sole Agency.
Generally taken if you are unable to place your confidence with one company.


GENERAL AGENCY
For an unlimited term and listed with as many companies as you like. Generally taken if you wish to have the right to sell privately.
Advertising is not provided by the companies.
The vendor is not placing any faith in any company therefore no company has the responsibility of achieving a result. The commission rate remains the same, however.


…and remember, when you list with us you're listing with the whole team!