The Closed Tender Process

Still our first-choice marketing method for most properties!

In any market conditions, the best price will be achieved when the buyer or buyers believe they are in competition. A well-designed marketing strategy that gives a property a strong profile is essential, and giving prospective buyers a finite date to work to will inject a sense of urgency to their decision making. We have developed and refined the Closed Tender process over the past decade to maximise competitiveness, perceived or real, and the results we've achieved have been extra-ordinary. We're confident that in most situations a Closed Tender will bring the very best outcome for our clients - the highest price in the shortest time - so talk to us before you commit to any other form of marketing.

Our advice: don't agree to any other process until you are satisfied that there are good reasons not to tender.

Key features and benefits of the Closed Tender process for vendors include:

• You have a Fixed Date for when your property should sell, and can plan accordingly.
• This process is Very Private in comparison to an auction. None of the interested parties can see what the others are doing, so the competitive element is enhanced.
• The perceived competition and the set date create Credible Urgency amongst prospective buyers, which manifests as higher prices.
• An appropriate marketing plan will ensure Excellent Exposure to the market, and all likely buyers (including those willing to pay the highest price) will have an opportunity to view the property.
• Tenders may be conditional offers, but tenderers are encouraged to submit their Cleanest Possible Offers in order to be most competitive. The timeline of the tender process allows most buyers the opportunity to do any 'due diligence' prior to finalising their tender submission.
• The Closed Tender process can Create Competition even when there isn't any. You need only one tender to achieve a sale - and buyers are never sure how many tenders have been received.
• Tender bids can be tens of thousands of dollars apart but usually represent the Absolute Maximum Prices that tenderers are prepared to pay. In an auction the successful bid need only be a few dollars above the next highest, even when the top bidder may be willing to pay a higher price for the property.
• Often a tenderer will become Emotionally Charged when deciding their price, so it becomes higher than the tenderer had initially intended because they don't know what other interested buyers are doing.
• The tenders received will Establish a Market Price for a property very effectively, and the vendor will then have the best possible information when deciding which, if any, tender to accept.
• You Are In Control throughout, and on the day the tender closes you will be invited to "open the envelopes". The decision on whether you accept any tender is entirely yours, but the process will have given you key information that will help you make that decision.

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"Cash Price/Conditional Price"

Our new "Cash Price, Conditional Price" strategy is being very well-received by buyers and sellers who appreciate knowing the very precise anchor price at which the property will sell.

Key features and benefits of marketing with a "Cash Pricer" include:

• The specified Cash Price is just that - a Firm Price that the owner has agreed to sell at provided that certain conditions are met.
• Those Conditions include a designated time and date for offers to be presented to the seller, a specified deposit and a preferred settlement date, and most importantly note that the cash price is only applicable when there is just one buyer.
• By also including a Conditional Price we are giving the buyer a clear indication of the benefit, ie the "Discount", that he will enjoy if his offer meets the Cash Price conditions and is completely free of any special terms.
• In the event the specified Cash Price brings interest from more than one buyer there will be Competition to Buy, and this will encourage a higher price to be offered by whichever of the buyers is most serious about buying.
• This new startegy of using a price anchor is proving to have Strong Buyer Appeal, particulary to those who are uncomfortable with the uncertainty of the various 'no price' marketing methods.

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"BEO" (Buyer Enquiry Over)

Using a "Buyer Enquiry Over" indicator has been an effective "no-price" marketing strategy that provides buyers with a loose price guide to help them verify their interest.

Key features and benefits of marketing with a "Buyer Enquiry Over" price guide for sellers include:

• The BEO figure is an Indicative Price to help buyers verify whether or not the property is within their intended price range. Note that that the advertised BEO figure must be at a level that would be seriously considered by the seller if presented as an unconditional offer.
• This process is Very Open and negotiation can occur at any time, although our practice is not to accept offers during the first week of marketing. We take seriously the obligation we have to our clients to ensure properties have appropriate exposure to buyers in the market before offers are considered
• The threat of competition, and knowledge that another buyer could offer at any time, does help Create Urgency amongst prospective buyers.
• With appropriate marketing and promotion we can achieve Very Good Exposure to the market, so that all likely buyers are aware of the property's availability.
• Offers may be unconditional as buyers are always encouraged to submit their Cleanest Possible Offers in order to be most competitive, however it's quite common for buyers to include conditions such as title checks, building reports or finance approvals in their offers.
• By having No Fixed Price we are still able to achieve a competitive environment, as buyers are never sure what other interest exists, or when other offers may eventuate.

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Advertising & Promotion

Our volume discounts are passed straight to our vendors, and we are confident our vendors get the very best prices available.

The aim with any marketing plan is to achieve the best possible exposure within the budget, and this inevitably means using the combination of various different elements.

Internet

All properties listed for sale with RE/MAX Leaders are automatically posted onto a selected group of popular websites that will ensure they are visible to local, national and international purchasers immediately they become available.

• Leaders.co.nz has full details of all RE/MAX Leaders' properties.
• New Listings for RE/MAX Leaders' will appear here first.
• Wellington Property Express is a new online property magazine that is growing rapidly in popularity
• RE/MAX.com is the largest international real estate marketing site in the world.
• TradeMe.co.nz is, of course, where almost everyone who is buying or selling anything goes online to look.
• RE/MAX.co.nz shows all RE/MAX properties throughout New Zealand.
• Realestate.co.nz is the property site of the Real Estate Institute of New Zealand.

And, of course, when you list your property with Your Home Team it will also feature on this site. Back to Top

Dominion Post

Advertising in the Dominion Post is based on squares, and ads are commonly 1, 2, 4, or 6 squares, with higher-end properties often using quarter- or half-page blocks. The sample here represents a 'double' - it comprises 2 standard squares.

Dominion Post advertisements are booked for 2 weeks at a time, and this has allowed us to negotiate even more favourable rates for our vendors. Each 'square' costs $275 for 2 weeks, so the double ad you see here would be $550 for its 2 week run and a 'quad' (ie 4 squares) would be $1100 per 2 weeks. Back to Top

Property Press

Advertising in the Property Press is also based on squares. The Property Press is a popular free weekly in magazine style on high quality glossy paper, and is available from street boxes at numerous points around the city. Each 'square' costs $76.65 per week and there are 8 squares per page. Ads can be 1, 2, or 4 (ie half a page) squares, or full-page blocks with placements made on a week by week basis. A quad ad (ie 4 squares) such as the sample here would be $306.57 per week and a 'double' (ie 2 squares), $153.29 per week. Currently we have a special offer that represents very good value: a full page for just $433.12 per week.Back to Top

We will work with you to develop a marketing campaign using a combination of elements that will achieve the best market presence within your budget.