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SHOULD YOU GO TO MARKET WITH A LISTED PRICE, OR BY NEGOTIATION? · The Real Estate Show

• 0:00
  Speaker 1: Well, Cam, the next question we're about to ask.
• 0:02
  Speaker 2: I'm sure our guests will have been asked this question
• 0:05
  Speaker 2: many times, probably on a weekly basis.
• 0:08
  Speaker 3: And it's a game changer, right, this could be worth thousands,
• 0:11
  Speaker 3: it could be worth tens of thousands of dollars.
• 0:14
  Speaker 4: Yes, in the result, yep.
• 0:16
  Speaker 3: As to which way.
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  Speaker 2: You go totally and so you obviously if you're selling
• 0:19
  Speaker 2: your home, selling via optional private treaty. If you decide
• 0:22
  Speaker 2: to go via private treaty, a question that then comes
• 0:25
  Speaker 2: up is do you go with like a listed price
• 0:27
  Speaker 2: from the outset or you know how some of them
• 0:29
  Speaker 2: say by negotiation?
• 0:31
  Speaker 1: Do you put that in? And Nick pain Is from
• 0:33
  Speaker 1: Momentum Property joins us. Now, Nick, good morning, how are
• 0:37
  Speaker 1: you going?
• 0:38
  Speaker 4: Good? Now?
• 0:38
  Speaker 2: Look, in this scenario, which I'm sure is one that
• 0:41
  Speaker 2: pops up for you all the time, what are some
• 0:43
  Speaker 2: of the things that you should take into account when
• 0:45
  Speaker 2: making this decision?
• 0:47
  Speaker 4: I think it's property is a really big one, Renee, Like,
• 0:50
  Speaker 4: I think not every property is the same, so you know,
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  Speaker 4: you've really got to take into account some of the
• 0:54
  Speaker 4: features your home will have, and also just your appetite
• 0:58
  Speaker 4: for risk, and I guess you want before making a
• 1:01
  Speaker 4: decision to sell.
• 1:02
  Speaker 3: Okay, and so is this a decision that you have
• 1:04
  Speaker 3: to speak to people with about pretty often? Is this
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  Speaker 3: one that comes up all the time, all.
• 1:09
  Speaker 4: The time, cam all the time. So obviously, like Rene
• 1:12
  Speaker 4: said before, auction or private treaty, we're probably predominantly auction business,
• 1:16
  Speaker 4: but we do talk about private treaty all the time
• 1:18
  Speaker 4: with people and those are the options with private treaty
• 1:21
  Speaker 4: with a price or without price, and a lot of
• 1:23
  Speaker 4: that time it means by negotiation. So talking people through
• 1:26
  Speaker 4: what it actually means and what kind of process you
• 1:28
  Speaker 4: run with each of them is really important. And so yeah,
• 1:31
  Speaker 4: we deal with this probably daily.
• 1:33
  Speaker 1: Okay, what is the riskier of the two.
• 1:38
  Speaker 4: Well, it depends if we talking about risk edging time
• 1:42
  Speaker 4: or maybe lost opportunity, But they both work. They both
• 1:45
  Speaker 4: work really well. It's just having the understanding of what
• 1:47
  Speaker 4: they are. Obviously, no price means that we're trying to
• 1:51
  Speaker 4: encourage offers. We're trying to get as many people through
• 1:53
  Speaker 4: the door as possible and get feedback from the buying
• 1:56
  Speaker 4: public as to what they think the house might be worth,
• 1:59
  Speaker 4: and generally that would be the first tactic to move
• 2:03
  Speaker 4: them to a private treaty. With a price on it.
• 2:05
  Speaker 3: Okay, and so let's have a look. Let's break that
• 2:07
  Speaker 3: down a little further. When we're thinking about a listed price,
• 2:10
  Speaker 3: what are some of the advantages of going to market
• 2:13
  Speaker 3: with a listed price?
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  Speaker 4: I think the biggest advantage CAMP is the fact that
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  Speaker 4: it's just clarity for buyers straight away. If you're putting
• 2:20
  Speaker 4: a price out there, especially without a plus, just a
• 2:23
  Speaker 4: flat listed price, it gives a lot of clarity to
• 2:25
  Speaker 4: the buyers. It also gives them something to use as
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  Speaker 4: a litmus test, I suppose, as to what they see
• 2:30
  Speaker 4: value of the house. And so generally, if your priced
• 2:32
  Speaker 4: really well, you will get a bunch of people through
• 2:35
  Speaker 4: the house and you'll get offers made relatively quickly on it.
• 2:38
  Speaker 2: Yeah and okay, so what about my negotiation? What are
• 2:41
  Speaker 2: the advantages of doing that?
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  Speaker 4: So I think that one RENEE is more so about
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  Speaker 4: trying to get information. So, like I said before, we're
• 2:48
  Speaker 4: trying to encourage offers and feedback from the public. And
• 2:51
  Speaker 4: it might be really good if you've got a bit
• 2:52
  Speaker 4: of a unique property where it's got views, or maybe
• 2:55
  Speaker 4: it's in a really cool street or something. It's a
• 2:58
  Speaker 4: little bit of a quirk and you can't quite right,
• 3:00
  Speaker 4: or if there's not a lot of information to get
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  Speaker 4: the actual listed price right. So by negotiation encourages a
• 3:06
  Speaker 4: lot of feedback and then you can, I guess, if
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  Speaker 4: you get an offer that's a miles above where everyone
• 3:12
  Speaker 4: else thinks, you can sell the property that way, or
• 3:15
  Speaker 4: you can use it for a couple of weeks to
• 3:16
  Speaker 4: ascertain where you should probably list the price.
• 3:18
  Speaker 1: And that's what I was going to ask you.
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  Speaker 2: Does that happen often where people start off with by
• 3:23
  Speaker 2: negotiation for a week or two and then move to
• 3:25
  Speaker 2: a listed price.
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  Speaker 1: How often does that happen?
• 3:27
  Speaker 4: Yeah? Absolutely, I think that's the right way to do it.
• 3:30
  Speaker 4: I know that there's some different different methodologies out there,
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  Speaker 4: but I know that that's how I've predominantly used it
• 3:36
  Speaker 4: in my career. Is that it's good for the first
• 3:38
  Speaker 4: maybe two or three weeks, much like an auction, really,
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  Speaker 4: except we just don't have the stress and the date
• 3:44
  Speaker 4: of the auction coming up to try and force the decision. Yeah.
• 3:48
  Speaker 2: Okay, well, really interesting and no doubt a situation people
• 3:51
  Speaker 2: listening currently or have certainly found themselves in at some
• 3:54
  Speaker 2: stage or will in the future.
• 3:56
  Speaker 4: Nick.
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  Speaker 1: That was great, Thank you so much. For sharing all
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  Speaker 1: that with this.
• 4:00
  Speaker 4: Sorry, thanks guys, cheers our Nick
• 4:01
  Speaker 1: Pain, who's a director and agent at Momentum Property