Auction

  • Widespread marketing
  • Set date forces buyer to make a decision
  • Offers on the day are cash/unconditional
  • Owner sets the terms of sale (settlement date etc)
  • No price that buyers can object to and try to beat down
  • Buyer competition forces price upwards
  • Attracts buyers over a wider price range
  • Buyers decide on suitability of property rather than price
  • Company focused on achieving best price
  • Property compared to others on its features rather than asking price
  • Short intensive marketing with high impact
  • Has further marketing opportunities if not sold on day
  • Structured plan in place rather than waiting for buyer

Tender

  • Widespread marketing
  • Sets a specific time frame—buyers must decide
  • Ideal if property needs "investigation" by buyers
  • Prices offered remain private
  • Owners can choose which buyer to work with
  • Offers may contain buyer "conditions"
  • May encourage lower offers
  • No buyer competition as in auctions 

Exclusive/ General

 

Exclusive

  • Pricing listed
  • More widespread marketing
  • Salesperson takes full responsibility
  • Buyers set out to pay less than asking price
  • No control over conditions contained in sales contract
  • Pricing limits the amount home seller will achieve
  • If priced too high buyers will offer on other properties
  • Property can become "stale" and price reductions may be necessary

General

  • No person has full responsibility for the sale
  • Marketing will be limited
  • No pressure on real estate company to sell
  • New buyers will be attracted to other properties with stronger marketing
  • No communication between agencies may result in the property being undersold