24th July 2020 / Prue Fletcher: The Only Guide You Need to Help You Navigate Selling During Lockdown 2.0

Melbourne's auction market has been digitally fast-tracked since the start of the COVID-19 pandemic. The pivot towards both in-house and boardroom auctions has temporarily been put to a standstill since Melburnians, yet again, find themselves in another Lockdown.

Auctioneers, vendors and buyers alike have rapidly been adapting to purpose-built, competition-based online platforms, using virtual conferencing apps, such as Google Hangouts and Zoom, to help continue to drive the momentum of the Melbourne property market.

Last weekend, there were 106 Auctions conducted online in Victoria with a noticeable increase in the amount of houses and units transacted through private negotiation, at 186. New records have also been set for houses and units sold by private sale, with properties sold by this method up by 7.6% and 3.4%, respectively.

But what does the next month, and potentially beyond, look like as we start to plan for a Spring market? What options are available? What's working well at the mid-way point of Lockdown 2.0? Here's everything you need to know!

There are currently SIX ways to sell Real Estate in Victoria:

1. Expressions of Interest – Otherwise known as a Tender method or Sale by Set Date
   
   A tender invites buyers to put in an offer for your property in the form of a written contract before a specified date. A tender is normally accompanied by a high profile marketing plan to attract more attention to the property than is normal for a private sale campaign. One of the very important differences in tendering a property is that nobody else knows what anyone else is offering.
   
2. Online Auction – Conducted through virtual conferencing apps (i.e. Google Hangouts, Zoom)
   

   Buyers must register to bid and can choose to appear in a virtual group feed or select to have phone representation through one of our Fletchers agents. The process is conducted in very much the same way of a public auction, however at the conclusion of the auction, contracts are exchanged digitally through RealTimeAgent. Should the property pass in to a live bidder, this person still reserves the right to negotiate with the Vendor at the Vendors Reserve Price.

   For a step by step process on how to bid at an online auction, Click Here.
   

3. Openn Negotiation – Similar to how eBay works, it's an auction that is run live. A process and digital platform that allows qualified buyers to bid on properties with complete transparency.
   
   Click Here to learn more about this progressive method of sale.
   

4. Private Sale
   
   A private sale strategy is a very successful strategy and positioned between "for sale" and "auction". It does not set a selling date, but it does maximize the price because of its strategic approach. Instead of putting a price on the property that includes a negotiating buffer, which often deters the target buyer, a price range is used.
   

5. Auction
   

   When there is an identifiable excess of demand, an auction has no other contender.

   Auctions can prevail both in a buyer's market or a seller's market. In a seller's market, where there are few homes to sell and many buyers, it will give sellers a higher price. In a buyer's market, where there are many homes for sale and fewer buyers, you are able to use the auction method as a way of bringing buyer interest to a head and can therefore save on valuable time.

   **Although the public auction method is temporarily unavailable in Melbourne, at Fletchers we are looking ahead with optimism and have begun booking in our Auction calendars for the upcoming Spring market as we emerge out of lockdown 2.0. We reserve the right to allow our clients to pivot to another method should these current lockdown measures be extended.
   

6. Off-Market
   

   Listing or selling your property off-market is when there is no public advertising or marketing used to help promote the sale. Instead, our agents actively work their database, use their network (social media, buyer advocates, email blasts, etc) and local market knowledge to bring qualified buyers through your property.

   Here, discretion and privacy are greatly valued, with the overall aim being to secure a result quietly. However, if an acceptable figure is not achieved, you have the added benefit of entering the market fresh at a later date.
   

The way the industry has been made to fast-track digital platforms will undoubtably change the way real estate is transacted in the future. Last month, Fletchers was pleased to have successfully modified our already existing auction campaigns for homes listed between the June and July period.

Currently, the driving force behind the stability of Melbourne's property market is that stock levels remain low, yet demand is high, resulting in prices remaining strong during these unprecedented times. Fletchers commitment to remain fluid and current with our approach ensures our clients are positioned to achieve the highest and best possible price the market has to offer.

If you are thinking of selling, or would like some more information about the value of your property in the current market, please do not hesitate to get in touch with any of our Fletchers agents today.

To find out the value of your property, please visit https://fletchers.net.au/request-property-appraisal