Key 3.3 Use preview marketing to help choose the best initial sales strategy.
John Duncan MBA BCA Licensed Real Estate Salesperson (REAA 2008)
Some salespeople claim all properties are suited for Auction, others claim the best sales method in their area is Tender, and still others insist all properties should be priced from the start of the marketing process. Every method has potential drawbacks for your vendors. All of these drawbacks will be diminished with excellent systems for implementing the chosen marketing plan, proactive database marketing, good presentation, and promotion, coupled with good use of CMAs for buyers.
However if you have mastered preview marketing then you should be able to assess and document the level of interest and the initial feedback from the active buyers in your marketplace. This should enable you to provide your vendors with a choice of approach and your preview marketing will make choosing the most effective approach for their property much easier.
If you have several buyers in a position to proceed and who are keen to have an opportunity to buy the property, an Auction campaign should secure the best result.
If you have competing buyers with a wide spectrum of potential uses for the property as an investment, or a family home, or wanting to purchase with conditions, or if your vendor wants to sell with conditions then a Tender should be the best option.
If you have not uncovered competing interested buyers who are ready to proceed during the preview phase, then a By Negotiation campaign with or without a price would be called for. A marketing strategy with a price on the property attracts the attention of the widest pool of buyers and when well managed can also lead to a multiple offer situation and possibly a result above the advertised price.
It is important to recognise that your office may have a preferred approach to the marketing and your vendor may have chosen you as their salesperson expecting the popular marketing process in your area to be run. Your vendor may also have strong views on which forms of marketing they would want for their property and these need to be given full weight in order to ensure their support for the sales process.