We’ve previously discussed the important of pricing correctly when marketing a property with a price. Price creates interest and is the most effective way of attracting buyers.
However, an alternative marketing strategy is to market a property without a price. This is called no-price marketing.
If, as a seller, you are really unsure of the correct market value of your property or if you are unwilling to list at market value, then you could opt to list without a price.
Listing without a price is much better than listing at the wrong price. If you overprice a property you will attract the wrong buyers – buyers who are expecting a property of higher value – or you will attract hardly any buyers at all.
If you list without a price then you will attract buyers to the property for what the property offers, and the price will not deter buyers.
There are a few different selling methods that can be used to market without a price. The first, and the most familiar, is the Auction method. A property is marketed with an Auction date and buyers are attracted to the property to see what it offers. A wide range of buyers are attracted in price ranges at, above, and below the market value of the home.
Buyers will view the property and they will decide for themselves what the property is worth. Then they will bid what they believe to be a market value price either at the auction, before it, or after it if not sold at auction.
The seller with then have a clear indication from the market what the market value of the property is. The undeniable fact is that it’s the market, made up of the buyers, that determine what a property is worth. It’s not the agent, and not the seller who decide this.
Another selling method for no-price marketing is “For Sale By Tender”. As with auction, a property is marketed without any price and buyers are attracted to the property for what it offers. A tender date is set with the seller and the agent, usually about 4 weeks after marketing commences. Buyers will decide what the property is worth and make a written offer that is placed in a sealed envelope and opened by the seller and agent once the tender date closes.
It’s a very effective way of attracting buyers without chasing them away with an inflated listing price. The buyers will tell the seller what they think the property is worth in writing.
At Harcourts Platinum we’ve been using the Tender method for over 5 years to attract buyers when a seller chooses “no-price” marketing. It offers all the benefits of Auction marketing, but without the negativity that can be associated with Auctions.
So as a seller, if you are unable or unwilling to list at the correct market value of your property, then rather than deter buyer inquiry, consider listing on the no-price method.
Of course, no-price marketing will only work when very powerful print and electronic advertising is used so that buyers are attracted to the property. So be sure to use a written advertising plan that is specifically designed for no-price marketing, as without it the selling strategy cannot work.
Principal of Harcourts Platinum, and Director of Harcourts South Africa
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