This is a “no price” marketing method which shows that you are a serious seller. The sale price struck often exceeds the reserve you have set. An auction is the best way to obtain an offer to buy when you require a specific date of sale. You also sell on your terms and conditions. An auction creates urgency. Potential purchasers have to act quickly if they wish to acquire your property. You also get three bites at the cherry. You can advertise “unless sold prior to” providing the opportunity to sell before the auction date, or you sell on the day or, if the property does not meet the reserve your agent can negotiate with the highest bidder post auction.
This is also a “no price” marketing method which encourages a prospective buyer to make a formal offer under terms and conditions suitable to them, but which can still be negotiated. A tender is, in effect, a sale by auction without the presence of “open” or “vocal” bidding. It also allows conditional buyers to make an offer on the property, usually at a premium, as they require time to sell their own home.
Sale by Deadline
A date is set, usually 3 weeks after listing. The house can sell any time before the 3 weeks expire. This timeframe will give all parties a clear indication of market value. You maximise what you can possibly achieve in the marketplace. Should the house not be sold after the deadline, a price is put on.
This requires the property to be marketed with a price. Sometimes price is a barrier to complete satisfactory results and there is also no urgency generated without a defined settlement date.
Or sometimes called, ‘expressions of interest’. The Purchaser needs to register their interest within a predetermined timeframe. This can flush out buyers, but often on terms to suit the purchaser and not the vendor.