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Market Strategies

At Ray White Tauranga we understand that there is a lot more to placing your house for sale than simply placing a 'For Sale' sign in front of your property. In personal discussion with you, decisions are made between us as to which method of marketing suits your home and your personal situation. This may include market conditions, demand for your style of property, and time frame amongst other things. Below you will see the major marketing strategies we use in the sale of real estate i.e. sale by Exclusive Agency, Public Auction or Tender.

Sale by Exclusive (Sole) Agency

Your property would be placed in our hands as exclusive agents for the agreed period of time. As your exclusive agent we are committed to actively marketing the property for sale. Several marketing and promotional options are open to you, specifically designed to target buyers. 

Under this arrangement the property will be promoted to the market either with or without a predetermined asking price, however the terms of the final contract can be changed as a consequence of negotiations with the buyer. Other companies may introduce buyers  through us on a shared commission basis (only one commission is paid).

As an Exclusive agency your property would have a For Sale sign erected, be advertised continuously on multiple Internet sites until sold, and be given priority in our print media advertising. 

 Sale by General Agency

For an unspecified period of time with as many companies as you would like. Although appearing on websites, very low priority has to be given to any print media advertising due to commitments to Exclusive Listings. There are several reasons why General Listings are not a good idea. Talk to us further before going down this path.    

 Sale by Public Auction

Examples of when the Auction system is used are;

• When a vendor (seller) requires their property sold within a pre determined time frame
• When a property has special attributes that may make it highly desirable. For example, the property may have great views or may have sub division potential
• When a market is over flowing with listings and a vendor simply must sell
• When a market is bouyant and there are far more buyers around than listings  

Benefits of Auction;

• The sale of property by Auction allows the vendor to take control of the terms of the sale from the outset. Contract preparation is made prior to the market period and buyers bid on your property subject to the terms and conditions in the contract. Most importantly the sale will be unconditional.
• Your property will be marketed without a price thus eliminating the possibility of underselling or the negative impact of it being overpriced.
• An Auction Advertising program is an impressive demonstration of your commitment to sell, with a targeted marketing campaign intended to saturate specific buyers in the market.
• Motivated purchasers like to know that they are dealing with a motivated vendor.
• An auction date creates a sense of urgency yet still allows purchasers ample time to complete their own inquiries and arrange finance. On the actual day of the auction each potential purchaser can clearly see their competition, which builds a competitive, emotive environment, often resulting in a sale.

Sale by Tender

The marketing concept for this strategy is similar to that of Auction except that both you and the purchaser can achieve a sale without the loss of confidentiality associated with a Public Auction.

The purchaser must complete a form of Tender and submit this together with a preliminary deposit to the agent before the determined closing date. As the seller, you may accept, reject or further negotiate with whichever tender you wish.

A purchaser may impose conditions with their offer and these conditions could be subject to negotiation prior to the sale being effected, however, guidelines can be given to prospective purchaser's in an additional document called 'Memorandum to Tenderers'. This is a guideline to completing the Tender form and can stipulate say, 'Any Tender form containing a finance clause will not be considered'.

Fixed Price

In New Zealand the fixed price method of sale has historically been the most commonly used. In other countries this differs, for example in Australia auctions have been leading the real estate market place for years. The vendor states a clear indication of their expectations. As a vendor you must be aware that buyers will consider your price expectations aginst price expectations of other vendors. It is therfore of paramount importance that your property is priced correctly.

In most cases buyers will negotiate around this price but the degree any individual buyer will go to will vary depending on a combination of;

• Motvation of the buyer to own the property
• Availability of comparable property
• Financial constraints of the buyer
• Market conditions and media commentary 

Failed negotiations are often as the result of unrealistic expectations of either buyers or sellers. From a vendors point of view this is why pricing must be accurate.

Price by Negotiation

The success of this method of sale is to a large extent governed by market conditions. We tend to suggest using this method where the market is bouyant and favouring sellers. Common questions a buyer will ask are "how much is the vendor wanting", or "what is the property worth". Where the property is suitable for an Auction or Tender campaign but you do not wish to go down this path then this method could be considered in conjunction with a set closing date for all offers.