Over the past 20 years selling in the area, I have seen many methods of sale that have been successful and unsuccessful at certain times.

Auctions on the Fleurieu don’t have a high clearance rate and have only been successful for high end properties, some rural properties and perceived bargains, Mortgagee sales for example.

Expressions of Interest/Tender is fine for larger farm/rural properties and some commercial properties. This method is used more as a tool to gauge the market when the market indications are broad.

Private Treaty/Fixed Price/ Price Range. These methods have been used a lot over the past 20 years for normal properties on the Fleurieu. It is where the vendor indicates, through the agent what their price expectations are. Purchasers make an offer, and that offer is negotiated between the parties. The range can never be larger than 10% on residential properties.

“Best Offer By” Since COVID this method has been used by a lot of agents as the market was moving at a pace where the vendors and agents did not know how high offers would go. Low stock, high demand moved the property market on the Fleurieu at a pace not seen before. Time on market shrank to only days or at the most a couple of weeks.

As a result of the above activity purchasers became a focus for some agents and a large number of properties started selling off market. Is this “Good” or “Bad”. Circumstances will dictate this. An agent’s job is always to represent the Vendor/Vendors. We are not contract to service by purchasers unless we are operating as a buyer’s agent. With this in mind, the vendors needs and requirements should always be our focus to ensure we achieve the best result we can for the vendors.

An example where an “off market” sale being a good thing is as follow:

If the vendor has inherited a property. They are still in grief and just want the property sold with a little fuss as possible. If the agent appointed is requested to present the property to their database and achieve a good price acceptable to the vendor without going to market, then this would be an opportunity to sell “off market”. Of course, there are other reasons why an agent could sell a property off market, but it should always be at the request of the vendor/vendors.

In a strong selling market, as we have at present on the Fleurieu, I would suggest always taking properties to the market. Why? When stock is low, and demand is high you will always get competing interest in the property. How much interest and at what level can only be determined by the market itself. Agents facilitate this process on behalf of the vendor to achieve the best result for the client, the Vendor/Vendors. Competition drives the market, not going to the market misses this opportunity to see what the best price achievable would be. This is what agents get paid for. Commission is paid to agents for achieving the best price possible that is acceptable to the vendors. Sometimes a quick off market sale may be exactly what the vendors want however, the majority of the time a vendors should request the property is presented to the market and expect agents to achieve the best possible price for the property. As stated above this can only be achieved by taking the house to the market. You employ and agent for their skills, market knowledge and negotiation skills and using the tools available to them through “best practice” industry standards.

In my opinion “Off Market” sales are risky and may save a few dollars on marketing but could possibly miss the best possible price for your home.

Give me a call anytime to discuss my comments above.

Roger Smith

Over 17 Years as an Agent

Extensive knowledge of the Fleurieu Pennisula

Avid Golfer

Husband to Deb, Father to Amy 10 & Charlie 9

Monster Car Enthusiastic