Fox Property Noosa offer a number of ways to sell your property

Open Listing

Exclusive Marketing

Tender

By Negotiation

Auction

When you list your home with more that one real estate company it is an "Open Listing". Each firm deals with the Vendor and basically works against each other to sell the property. Only the selling agent is paid commission on the sale of the property.

Many local agencies will not advertise or market open listings, because as the saying goes in Real Estate;

"You are everybody's listing but nobody's responsibility"

Many years ago, real estate companies had hundreds of open listings on the files. We found it impossible to give every vendor the individual service he/she deserved. We found that changing to exclusive listings only has resulted in a success rate in excess of 70%. Twenty years ago this was unheard of!

Many vendors feel that by listing their home with more companies, they will access more buyers. This, in fact, is not the case. Buyers, unlike vendors, "shop around" for houses not companies. If your home is marketed correctly, the buyer will find it.

We also found there was another disadvantage when we used open listings. When the house first came on the market, there was an initial rush to view the property. That rush then slowed to a halt as salespeople put their time and energy into selling their "exclusive agencies". Marketing then had to be restarted, which proved to be costly in terms of time and often resulted in the necessity to lower the asking price.

Exclusive Marketing has given the best results to vendors (note an exclusive marketing package may be an Auction, Tender or a No Price method of marketing, but it is still an exclusive). N.B. We can now offer a success rate in excess of 70%!

So How Long Do We Sign an Exclusive Listing For?

FOX Noosa initially ascertains the length of time it is taking, on average, to sell a home in your suburb. We then put a marketing program in place for twice that average time, i.e. if it is taking 30 days to sell a home in your area, we will suggest a 59-60 day exclusive. Some homes are selling in less time, but some will take longer.

A Tender invites buyers to put in contract form, an offer for your property.
The Tender date is basically a deadline for interested parties to put their offers in writing. It is normally accompanied by a high profile marketing plan which involves additional marketing by way of large advertisements (black & white or colour), line drawings etc., to attract more attention to the property in that initial phase.

One of the very important benefits for Tendering a property is that nobody else knows what anyone else is offering, whereas by the Auction method, you can see that somebody is bidding over the other side of the room and then go one thousand dollars more. With Tender they have no knowledge of what anyone else is doing.

Another benefit is, that you as vendor, choose who buys your home and on what conditions. The highest Tender may not necessarily be accepted. The disadvantage is that there isn't the pressure to be unconditional, i.e. cash on the day, subject to finance, subject to a builder's report, etc.

Overall, Tender is an advantage when you are wanting to be careful as to the person who buys a particular property. It may be used when you "know" that there will be more than one buyer.

The By Negotiation strategy is a very successful strategy which is positioned between For Sale and Auction. It does not set a selling date, but it does maximise the price because of its strategic approach. Instead of putting a price on the property that includes a negotiating buffer, which often deters the target buyer, a price range is used.

There are two important principles involved here.

90% of home buyers spend more than they originally intend. In other words, they stretch their budget upwards.
By using a price at one end lower than the market value, and at the other, higher than market value, all available buyers will inquire thereby making the identification of the Target buyer easier.
No amount of promotion will attract the right buyer to a property that appears to be over-priced.
When this strategy was first introduced, the number of purchasers inquiring increased by 50% overnight.

You as the owner are always in control of the decision to sell, there is no possibility of selling for less than the property is worth. In most cases, the price achieved by this method, exceeded all expectations.

Auction has been around for hundreds of years as a way of selling all sorts of things.

When it comes to Real Estate, Auction is gaining momentum as the preferred way to sell across Australasia. In some areas up to 80% of all homes sold have been sold by Auction. This is not true in Queensland, but it certainly is a method that people are considering more and more. When there is an identifiable excess of demand, an Auction has no peer regardless of the State or City.

We discuss here the three stages of Auction. If you choose this method you should understand that Auction is not just about the Auction Day. Overall the main considerations of Auction are ...

That it can attack the market both in a buyers market or a sellers market. In a sellers market where there are few homes to sell and many buyers, it will get buyers a higher price. In a buyers market where there are many homes for sale and fewer buyers, you may attack the market and therefore save valuable time.

Overall, the main benefits of Auction are that it combines the benefits of no price marketing in the first stage, the Auction which puts pressure on the buyers, and then an Exclusive, correctly priced in the third stage.

Among other things it is the combination of these three strategies throughout this process that we believe is Auction's biggest strength.

It is important to realise that an Auction is a three stage process. It is not a focus on the day of the Auction but rather a very controlled way of marketing which allows your home to sell at any of the three stages, and you maintain control throughout. The three stages available to you are Tender, Auction, and Exclusive listing.

First Stage
This is usually between 3 weeks (for a market that is responding quickly) to 5 weeks (where a market is a little more sluggish)

The large advertisements give you extra profile and you will be asked by your consultant to help fund these.

In this first stage no price is put on the property so that buyers cannot object to the price and then decide not to look at your home. It has been proven that more buyers come to view homes out of curiosity, lured by the larger ads and descriptions. This can result in them falling in love with the home, deciding they want it and working out how much finance they can raise.

"Overall they respond to the property not the price"

In the first stage there is a pressure on all buyers because there is a deadline, i.e. the Auction day. To be in a position to compete at the Auction they must be a cash buyer. Our consultants will give buyers every assistance, including forms on How to Buy At Auction. Financial institutions will confirm finance prior to Auction to allow people to bid.

Throughout this first stage your consultant will be following up the buyers and thereby receiving one of the most important parts of an Auction process, ie. feedback on the price and the condition of your property.

You will use this feedback to set a reserve price just prior to the Auction day in a meeting with your consultant and possibly the Principal.

You may sell during this first stage, this is not just a lead up to the Auction itself. If everything is in order you take into account the numbers through, the time left to the Auction day, the overall interest you are having and then make a decision on whether to take an offer prior to auction.

Second Stage
By the time the Auction day arrives you will be well informed by the marketing consultant as to where the value of your home lies.

You must understand that the Auction is a small part of this whole process (approx 6 minutes). If your home doesn't sell, it does not reflect on you or the house itself. Simply the buyer has either not been attracted to your home yet or they are not in a position to purchase it during those early days.

Third Stage
Should your home not sell in Stage I or Stage II then Stage III becomes important. We use all the information from Stage I and Stage II to set a positive selling strategy for this third vital stage. The price you put on your property is important and it is imperative that you go over the information from the market so far and be as objective as you can about putting a price on in that third stage.

The initial stage straight after the Auction is important and in some markets a reasonably high percentage of properties sell in the first few days after Auction.

Use this vital third stage carefully. Be objective, set the price, and talk to your consultant about anything else that may be done to help present your home, review the advertising, and then allow your consultant to get on with their work.

Auction gives your property more exposure than most other methods and encourages, rather than discourages, the widest possible scope of buyers because it has no price.
Auction uses the most reliable indicator of value ... the market itself. It avoids the risk of setting too high or too low a price on your home.
Auction initially targets serious buyers and cash buyers.
Auction creates urgency amongst interested buyers, by imposing a deadline, to inspect the property and arrange finance.
Auction has the highest potential for the best possible price. Bidding by buyers can only increase the price, whilst buyers negotiating on priced properties attempt to decrease the price
Auction allows you to set the terms and conditions of sale, not the buyer.