The Deadline Sale Explained
Sick and tired of Auctions? Sure, they’re a great way to sell when the market is pumping, or if you have a property that’s hard to put a value on. As an Auctioneer myself, I’ve long been a fan of Auctions when the conditions are right. But that’s the key - the conditions need to be right. One alternative to auctions is the Deadline Sale.
What is a Deadline Sale?
Put simply, a Deadline Sale is like a tender but you can sell prior to the deadline.
The property is offered for sale with no price. A deadline is set for offers to be submitted (eg three to four weeks) on the basis that the vendors reserve the right to accept an offer at any time before then.
The great thing about Deadline Sales is they give the buyer freedom to make conditional offers. From the buyer's perspective, the major drawback of Auctions is the fact that you need to be in the position to make a cash offer. Not so with the Deadline Sale.
Deadline Sales can generate a high level of interest through marketing. And the fixed timeframe for offers creates urgency and action from buyers. The idea is to generate multiple offers for the vendor to deal with.
Deadline Sales are particularly effective when the property is complex and requires more in-depth due diligence, for example, a property with multiple dwellings or a commercial multi-title offering.
The advantages of a Deadline Sale:
- They can attract a high level of interest through the marketing programme
- Create urgency as a result of a fixed time frame for offers to be made by
- Deadline Sales provide the opportunity for a motivated buyer to get in quickly and present you with a favourable offer prior to the deadline
- Ensure that interested parties make their best offer
- Deadline Sales don't cap the price, therefore the risk of forfeiting a premium is averted
- And they allow you to make decisions in your own time without pressure.
Is a Deadline Sale for you?
If you're looking at selling now then a Deadline Sale may be worth considering. Here in the Tauranga real estate market, we're getting kick-back from a lot of buyers who are tired of missing out on houses through Auction, or who are simply not in the position to make a cash offer.
However, the choice of sales method comes down to multiple factors - your property, market conditions, your position, and your preference.
Wondering whether a Deadline Sale is for you? Let's have a chat.
Rodney Fong is a Licensed Salesperson and Auctioneer working with clients throughout Tauranga, Mt Maunganui and Papamoa.< Back to Blog Articles