Also known as "PBN", in this sale method there is no end date for offers, and potential purchasers make offers based on what they think the property is worth in the current market.

You may want to list your property for sale by negotiation when it’s difficult to estimate the market price of your property.

If there is more than one written offer, it becomes a multi-offer process.

As the vendor, you can consider the offer(s) and decide what to do:

• Consult your lawyer or conveyancer, sign the sale and purchase agreement and accept the offer.
• Reject the offer. In this case, the buyer may decide to put in another offer.
• Negotiate the offer.
• The buyer can withdraw their offer at any time before it has been agreed and signed by both parties. A verbal acceptance from a vendor is not binding, and they can still choose to accept an offer from another buyer.

If the vendor accepts an offer, the buyer and vendor will need to work to meet any conditions included in the sale and purchase agreement.

When all conditions have been met, the lawyer or conveyancer can confirm the sale is unconditional.

Don't be fooled, there are plenty of times when putting a price on your house is the best form of marketing. It can be a very good strategic option.

First of all, buyers know where they stand. In a hot market, buyers might stay away from a property because they mistakenly believe it to be outside their price bracket and they may be "over" missing out at action. In a cooling market when buyers have more choice and open homes can be lonely affairs, the less thinking you make buyers do the better.

There are plenty of top-selling agents who swear by pricing listings, because it brings more people through the door.

Don't feel like you are settling for a lower price either. The goals is to get more people interested in your property and this will regularly lead to a multi-offer situation.

Lastly, investors prefer priced listings because it lets them do their sums

A deadline sale is very similar to a tender process but is less formal. In this sale method, the property is marketed for a set period with an advertised end date.

A deadline sale offers vendors more flexibility than sale by tender. The vendor can accept an offer at the time that suits them. Offers can be made at any point up to the end date and because vendors can choose to accept an offer at any time, buyers will need to be proactive in registering their interest. Offers are made on a standard sale and purchase agreement.

They may also choose not to accept any offer until the end date. Offers are made on standard sale and purchase agreements and prospective buyers can include terms in their offer.

The vendor is not bound to accept the highest offer. The vendor drives the process and chooses when they’ll look at the offers, whether they’ll accept any offers, and who they will negotiate with.

Both different sides of the same coin, auctions and tenders invide interested parties to do their numbers and put their best foot forward.

Both methods are great at bringing motivated buyers to the table and even if a property does not sell on the day, you have opened a conversation with a prepared buyer and it is extremely common for a property to go under contract even if it does not sell under the hammer.

These methods of sale can be less popular with investor buyers as they often don't want to wait until the day of the auction to put in their offer. Sellers can choose to offset this by including more information for interested buyers, such as a vendor-paid LIM or building report.

Depending on the market and your property, we may recommend an auction or tender as the best option for you. 

Source: REA