What is a Set Date of Sale?

Brent Palmer
Published on April 10, 2017

What is a Set Date of Sale?

The best price for any property is usually achieved in the first 30 days. Why is that?

Because at all times, there exists a pool of buyers.  Imagine a bus-load of them, who are looking in a suburb and in a specific price range.

More often than not, if the property does not sell in the first 10 to 30 days, this pool of buyers is used up.  You are then left with a trickle of new buyers who are coming onto the market.

It’s imperative that preparation, promotion and the price is right the day your property hits the market! (Otherwise the WRONG bus-load of buyers turn up!)

On countless occasions, agents have had an offer refused by home owners in the first few days or weeks, simply because it was the first offer.  Then the property ends up selling much later for less than the original offer.

Even more important are the offers missed!

Two top reasons a property doesn’t sell

The price and the marketing (which includes advertising).

If a property is overpriced, you will not get the buyer interest as the potential purchasers are wanting to get more for their spend than what your home is offering when comparing to other homes being sold.

On the other hand, if it is not promoted adequately you will again get insufficient buyers to achieve a successful sale.

The traditional strategies with a ‘Set Price’ or ‘Auction’ may not meet all the needs.

Other methodologies include – Tender, Expressions of Interest, Price on Application, Offers Over, Set Date of Sale  or Price by Negotiation.

Marketing your home at a fixed price can miss the buyers because of over pricing and under promoting.

On the other hand, whilst auctioning your home achieves good promotion (usually concentrating on the first 21-30 days a home is on the market) many people can be put off with the auction process because of the tensions involved plus the need for an unconditional or cash offer.

This can prevent many buyers from making an offer!

As a result, I have found myself beginning to employ the Set Date of Sale method more and more for home owners.

Put Your Home in The Spotlight So it Becomes The Star Attraction.

The ‘SET DATE OF SALE’ System has 3 very important components.

Essentially it’s heavily promoted in the first 3 weeks, which includes open inspections over 3 weekends and 2 mid-week open homes, usually on a Wednesday or Thursday.  Where possible mid-week viewings will include open homes at dusk.

Buyers are advised the time and date of the Set Date of Sale closing.  In the marketing, this will read:  Set Date of Sale closing 4pm Thursday 6th April, usually followed by the words, No Prior Offers considered. If you are open to offers prior to the closing date, there is the option to do so.  It is imperative though, that this is shown in ALL marketing and promotion of the property.

During this time, a formal offer can be presented to you prior to the closing date or alternately, potential purchasers can register their interest if no prior offers will be considered.  I will contact all the registered buyers a few days prior to the ‘Set Date of Sale’ closing date to firm up these offers.

The goal for the home owner is for multiple offers to be made!

A very realistic ‘Market Price’ can be determined by you at the guidance of the Comparative Market Analysis report I prepare for you prior to listing your home.  This shows other similar homes to yours in your surrounding area; when they sold, and for how much.  This price is NOT disclosed to the buyers.  This price (usually in your head) is the price you can go by as the figure you would not sell your home anything less for.

If the buyers ‘Love’ your place and can see themselves ‘At Home’ there, they will not want to miss out.

Now you are on the way to a great sale using the Set Date of Sale method!

So what’s the difference between a Set Date of Sale, a Deadline Sale or a Tender?

Well a Deadline Sale is just a different terminology, the Set Date of Sale and the Deadline sale are exactly the same.

The Tender has the same principal process and the same goals for the home seller however they are typically more restrictive on the buyers. The two main items of issue for buyers are:

1. The For Sale by Tender Agreement states that a 10% deposit needs to paid with submission of the Tender Documents.

2. Buyers can not withdraw their tender prior to 5 working days after the date the tenders close. On a residential property, buyers do not like this, especially in a hot real estate market, as it takes the buyers out of the market.

The Set Date of Sale (or Deadline Sale) is less onerous than a Tender for all parties involved.

MARKETING

‘Set Date of Sale’ offers your property premium exposure in the first 3 weeks of marketing.  I have comprehensive Marketing Option plans available to market your home in the best possible way to take advantage of the varieties of print and digital media we utilise.  These marketing plans can also be tailor made to suit your budget.

Marketing sets the stage and puts the spotlight on your home!

Your Property Must Be AND is, The ‘STAR ATTRACTION’

3-PHASE NEGOTIATION

This is an integral component of the Set Date of Sale process.

THE THREE  PHASES

1. Preparation Stage

In these 2 weeks or longer, if required, your property is prepared to perfection as we begin the marketing process. This includes any work to be done on your home, pre-packing and the professional photography.

2. The Marketing Phase of Set Date of Sale

During this 3-week period, the property gets superb, constant quality promotion.  Buyers have 2 options.

First of all, they can place an offer to negotiate immediately.

Alternatively, they can register their interest in which case I will contact them a few days prior to the Set Date of Sale closing date to negotiate with them and get their offer ready.

3. The Negotiation Phase

This is when the most intensive negotiations are expected to take place.

All offers are collected, and buyers can also make offers with subject-to-conditions which increases the pool of buyers dramatically.

When buyers realize there are plenty of other purchasers who are also offering, they then must put in their maximum offer up to and including their walk-away price or they may well miss out.

There is real competition amongst the buyers and the agent must take extra care when dealing with the buyers to not only keep them informed but also to make sure all dealings are above board and legitimate.

However, I will not divulge buyers offers to each other. If at all possible, I would prefer not to see the amount each buyer has offered until the time the envelopes are opened in front of you.  This is usually done within an hour of the closing time on the evening of the Set Date of Sale date.

It is then up to you to choose the offer which either offers the most, and/or has the most favourable conditions in their offer which appeal to you …ie…cash unconditional offer, or early settlement date.

So there it is … the fabulous Set Date of Sale strategy for the selling of your home.  It combines all the best aspects of all of the strategies and can ensure you get a successful sale within weeks of putting the property on the market.

So, let’s get your place SOLD too….

About the Author: The above article, What is a Set Date of Sale was written and provided by Brent Palmer, a local leader in the field of Richmond and Nelson Real Estate sales, marketing, advanced technology for home selling, and social media.

You can contact Brent Palmer here, or at 027 544 9921. He has helped many people buy and sell homes in the Nelson, Stoke and Richmond areas for years, and would love the opportunity to help you as well.

Thinking of selling your home? I have a real passion for helping people sell their homes in our Nelson and Tasman Region, as well as the marketing, social media & advanced technology for home selling that goes along with it. I’d love to have the opportunity to sit down with you discuss how we can work together to get you the best price.

I help people buy and sell real estate in the following Nelson and Tasman  towns  & neighbourhoods: Wakefield, Brightwater, Hope, Appleby, Redwood Valley, Mapua, Stoke, Tahunanui, Atawhai and of course, Richmond and Nelson City.

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