Set Sale or Sale By Set Date
Some new auction rules, to a degree, have spawned a new selling method, or is it? It's called ‘Set Sale' also known as ‘Sale by Set Date'.
How Set Sale works
The agent inspects your property and recommends a way to remove all the hurdles between buyers and sellers by using a new innovative way, oh this sounds good...
A buyer inquiry price range is established. (seen that before with auctions!)
An intensive three to four week promotional campaign is undertaken to ensure all buyers are reached. (sounds a bit like auctions again?)
A closing date for offers is established to create a sense of urgency with buyers and to spur them into action (gosh this sounds familiar, bit like an auction?)
During the Set Sale or Sale by Set Date promotional campaign the real estate agent collects expressions of interest from buyers. Buyers can make a formal offer prior to the set date. If an offer is made the agent should contact all the buyers that have expressed interest. (now it's sounds a bit like a tender, with a twist?)
A buyer may have only one opportunity to make their offer, so the theory is that everyone puts in their best offer first. (now that's a tender!)
As the seller, you choose the most appealing offer at the end of the Set Sale or Sale By Set Date period, or open negotiations with the best offer, or re-list the property for another set period.
Eliminates all the problems, or does it?
The theory behind all this is it's supposed to give all parties some clarity and eliminate all the problems associated with negotiating and buying a home... Does it?
The melting pot
This new innovative way of Sale By Set Date or Set Sale is really just a rehash of auction, for sale by tender, and price range selling, all melted into one!
Swap shoes with your buyer
One important factor to remember with negotiation is... if one party feels that they have no power whatsoever and they are being hammered at every turn the only option for them is to walk away. And they usually do because it's just too hard!
One very basic principal of marketing is….make it easy for the buyers to buy.
So is this new selling method the right one for you? The best way to figure that out is to put yourself in the buyer's shoes for a moment, how would you feel?
In theory, the Set Sale or Sale By Set Date method may sound terrific but there are pitfalls that you will need to look out for (agents will paint a rosy picture but this method is not suitable for all properties or markets) so do your homework.
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If you are currently selling, or about to sell, and would like someone independent sitting on your shoulder observing the goings on, without interfering in the process, drop us a line and see how we can assist. We understand that you might have only dealt with agents once or twice in your lifetime but we do it every day! Contact iREC and see how we can help.