>>updated 16 November 09

Earlier this year ReMax Leaders responded pro-actively to changes in the market and developed their unique cash price marketing method. It has been significantly successful for vendor clients and increased ReMax Leaders share of the total volume of sales in a difficult market. Success with the cash price method initiated a review of our Closed Tenders and the evolution of our tender reserve option. It is already proving to be the most effective method of a achieving a quality sale in this market. Both these methods are based on traditional skills and will be preferred methods of choice in any market conditions.

What is tender reserve marketing?          

ReMax Leaders carefully-controlled traditional Tenders proved to be by far and the best marketing method for securing the COMPETITIVE BUYER BIDDING that caused PREMIUM PRICES to be paid. Unlike a public auction the process was completely PRIVATE. As well, the winning bid was usually significantly above the underbid. Those tenders worked well in the buoyant market despite the unpopular "no price" marketing. The market has changed! Although the method remains effective for properties with obvious market appeal, it has not been as universally effective. In this market, buyers are drawn to those properties they expect might be a BARGAIN. Terms like "DESPERATE", "FINANCIAL PRESSED", or other negative connotations are being used by some agencies. A tender reserve promotion is a "mainstream" marketing method that appeals to buyers without inferring the owner or property has problems. It is proving to be a very successful and effective method.

How does it work?

The "key" is for you to establish your tender reserve price by reference to actual sale prices achieved and the competition you face from other properties for sale at the time. I will prepare a concise report on these factors for you. We then need to identify the price you would be prepared to accept for the property from a buyer provided it met your other requirements. We allow a suitable period of exposure to the market, nominate a date for Settlement, and require a 10% Deposit. A sale at the Reserve Price will only occur only if a fully compliant tender is unconditional and it is the ONLY Tender submitted. If more than one tender is received, or if an only tender fails to meet all requirements, you are free to negotiate as you wish. I make the point that the objective in setting the Reserve is for it to generate competitive bidding and it should be the lowest price you would accept, given the restrictions on it applying and the opportunities it offers.

What are the advantages?     

In a difficult market buyers are harder to attract and conditional contracts are more of a risk. The promotions that go with our tender reserve sales are catching buyer attention and producing competitive offers. I will keep you fully-informed on progress during the period. At close of tenders You will have opportunities to negotiate provided there is more than one offer or if the only offer does not meet your pre-determined requirements. 

What does it cost?

The commission fee we agree at the outset will only become recoverable (from the Deposit) when the sale is confirmed. A budget for advertising and the method for its payment needs to be agreed at the time we list the property for sale. We have a structured 4-week promotion package that has been used successfully for the bulk of sales to date. It includes exposure in the Dominion Post, the Property Press, open home lists, displays on several key websites, signage, and flyers, all for $705 gst inc. Upgrades are available at cost for "photo" signage, "multiview" web displays, larger adverts, etc, as an option. marketing.

Call me for more detail...

There is a lot more that can be said about what is really happening in the market, the changes we have made to attract the attention of buyers, the greater impact of "supply and demand", and the success we are having with our new sales strategies. Astute vendors with property yet to be listed for sale in the current market should contact me as listed below to get answers to the questions that are import to you. you can also learn more about the advantages to be gained through me working at Remax by following that link.                        

Bruce Mitchell  |  free2mobile 0800 635 942  |  bruce@brucemitchell.co.nz  |  www.brucemitchell.co.nz  |