Bendigo Real Estate

About Pilling Systems

"Buyer Inquiry Range" - how it works

When a property is marketed with the traditional fixed price, sellers always ask about 10% above the market price for a number of reasons. With some it is because they have a fear of underselling. With others, they may have an over-inflated view of what their home is worth. At the very least, all sellers will want a buffer to allow for any negotiation.

On the other hand, buyers looking for a property react entirely differently. They form a triangle with very few above the market price. Most will look 10 - 15% lower than what they will finally pay because when they find their dream home, even if it is above what they intended to spend originally, they will buy it.

The fixed price system services neither the sellers nor the buyers. Sellers homes stay on the market for a long time and sell for much less than they anticipated. On the other hand, buyers miss out on seeing those properties therefore miss out on the opportunity to buy their dream home.

As a result, a new system was invented.

This involves a Buyer Inquiry Range and this is how it works:

Instead of setting a fixed price, which eliminates at least two thirds of the buyers, a range is set to attract buyers looking within that range. In other words, if a purchaser is looking in this range, they are encouraged to look at this property and maybe they will be able to successfully negotiate for it. The range starts at a buyers Like to pay price which is the entry point when they first start to look. The value is the point the agent suggests they should start to negotiate.

What Does a Purchaser Do?

They simply place an offer of what they believe is the right value compared with other homes they have seen. They will be prepared to negotiate and usually start their negotiations in the middle of the range. Once their offer is submitted our agent will do his or her level best to negotiate a deal agreeable to both parties.

Set Sale - How It Works

Set Sale is a new strategy which is packaged with the following eight features:

• 1. A licensed valuer provides a sworn valuation which ensures four major advantages:
  

  The vendor knows exactly the correct market price and can be confident of neither underselling nor overpricing.

  The correct price range is being used right from when it first hits the market. Therefore we don’t waste any of the first month with the wrong ranges and consequently a sale within 30 days is more likely to occur.

  You don’t waste the investment you have made in a marketing program. This is why it must start correctly.

  It can be used with buyers on the occasions when their offers are too low.

• 2. The property is marketed with a Buyer Inquiry Range


• 3. An intense marketing program similar to an Auction is concentrated in a 30 day period. This guarantees maximum exposure by advertising everywhere the buyer will look, including a photo signboard bringing the inside of the home to the outside of the property.


• 4. A deadline is set on the sale similar to a tender, but a new system has been designed to encourage offers to be made prior to that date.


• 5. Buyers are encouraged to negotiate immediately or they can register their interest to be contacted two days prior to the Set Sale date or when another offer is submitted. This is different from the tender process because the buyer does not have to submit their price yet.


• 6. Unlike the auction, the sale can be subject to any conditions agreed to between the buyer and the seller. However, those conditions are more restrictive than they would be with a sale by Buyer Range to ensure the vendor is not messed about by an uncommitted buyer.


• 7. All tension for both buyer and seller is eliminated. This is the most stress free system for all concerned.


• 8. The most important feature of all is the closed negotiation of the Set Sale process. With an auction the price you receive will only be $100 more than the second best bidder because it is an open bidding system. Often buyers at auctions are delighted because they bought it for less than they were prepared to pay. As a result half the vendors are unhappy with the result they achieve. This doesn’t happen with a Set Sale because the other buyers don’t know what the other offers are.




In short Set Sale strategy eliminates the hurdles we put in front of the buyers, therefore we get more of them. It gives vendors the confidence to know whatever price they get, that they have left no stone unturned and have achieved the best price, in the shortest time, with the least amount of stress.