How to choose the right selling method (and win more listings)

You've just finished a great appraisal. The owners like you. Then you say "I think we should auction this" and watch their faces drop.

"We'll never do an auction," they respond. You've just lost the listing - and you didn't even know auction was off the table.

One of the most common ways agents lose listings is by recommending the wrong selling method - or worse, by appearing unsure about which method to recommend.

This guide will show you how to approach selling methods in your listing presentation to maximise your chances of getting the home sold while also winning the listing.

The mistake I used to make

Early in my career, I would offer owners all the different methods - price, by negotiation, tender, auction - explaining the pros and cons of each, then ask if they had a preference.

It was amateur.

If you're wishy-washy, flipping between options - "we could put a price on it, but... or maybe by negotiation... or you could do a tender" - you're not inspiring confidence.

That said, you can't just pick a strategy and say "this is an auction property" if your client has had a bad auction experience. You'll struggle to win that listing.

You need a method that works to win the listing AND get the home sold. Like many aspects of real estate - it pays to be bespoke.

Step one: Understand the owner's past experiences

Before you mention any selling method, get a deep understanding of the owner and their past real estate experiences.

During the appraisal, ask discovery questions:

• Have you been through the selling process before? How did that go?
• What selling method did you use? Would you use it again?
• What would you do differently this time?
• Do you have any concerns or preferences about how your home is sold?

If they've never sold, ask about their buying experience - what selling method was used, how they felt as a buyer.

You're discovering whether they have a bias against or towards a particular method.

This prevents you from pitching an auction only to discover they had a terrible auction experience three years ago. You've already lost them at that point.

Don't commit too early

If owners ask early what selling method you'd recommend, say something like:

"Every property is different. I like to get a deep understanding before recommending the approach that will get you the best possible price. Let me finish looking around and understanding what you're trying to achieve. Then I'll come back with a plan. Selling method will be an important part of that discussion."

Be flexible. But settle on your recommendation between the appraisal and the listing presentation.

You need to combine what the owner wants (based on past experiences) with what will work for the property.

Which properties suit which selling methods?

Auction

For an auction to work, you ideally want three to five unconditional bidders. Ask yourself: Can I, in three to four weeks, expect my market to produce 2-5 people in an unconditional position to buy this house?

Auction works best with competition. Some salespeople auction unusual properties because they're hard to price. This is flawed logic. If you're selling an unusual property that won't attract a big market, auction isn't your best bet.

Auction the popular properties - character homes everyone falls in love with, solid three bedroom homes in desirable suburbs, good second family homes. The buyers have already been through buying before and are more comfortable with the auction process.

Tender or deadline sale

These work best if you feel confident you'll get one to three buyers in a two to three week period.

It's disappointing if you run a tender and don't get any offers, but it's valuable to have a deadline for buyers to work towards.

If you're thinking "this should be reasonably popular - maybe not quite as popular as an auction property, but there should be a market" - then a tender or deadline sale is a good fit.

Price or by negotiation

Use a price when you're not sure how big the market is. If you're thinking "I'm not sure where the buyer's coming from. We need to make this as easy as possible" - remember that some buyers are put off by tenders, deadline sales and auctions.

By negotiation has the worst of both worlds - no price and no deadline. But if you're uncertain about the market, it keeps your options open.

Here's why: with a tender or deadline, if you've got 2-4 people trying to buy, you want competition. You want them all to wait until closing day. That achieves the best price because buyers only have one chance.

But with a property that might only have one or two buyers, you don't want to risk making them wait. They might disappear. If your property has a small target market, by negotiation or a price allows you to snap that buyer up when they come along.

By negotiation is also handy when the owner has a high price expectation and you don't want to put buyers off with a massive asking price.

Use price or by negotiation for properties where you're not sure where the buyer's coming from. But only use a price if you're confident it will be attractive to whatever buyers are out there.

Quick reference guide

• Expected 3-5+ buyers + popular property = Auction
• Expected 1-3 buyers + reasonable interest = Tender/Deadline
• Uncertain market + limited buyers = Price/By negotiation
• Then adjust based on owner preferences

Factoring in the owner's preferences

If owners have a strong lean towards a price, go down that road. You could suggest combining a price with a deadline or tender to maximize their chances.

If they're open to an auction and you feel the property will attract bidders, pitch that. But if they're anti-auction, pivot. If their home is popular, use a deadline sale or tender. You still get the power of a campaign and deadline, while catering to their needs.

Some offices strongly encourage agents to use certain methods. Go with that when it works, but have flexibility and ask good questions and know when to adapt your approach to maximise your chances of winning the listing.

How to present your recommendation

After the appraisal, pick one method and go for it.

Say: "I've considered all the facts. I've looked at your property and analyzed it. For a property like yours, the best way to sell would be a three-week tender" (or deadline sale, or auction).

Tell them why. Explain why that method will get them the best possible result.

Believe in it. Don't be wishy-washy. Don't jump between options. Tell them what you recommend.

But base that recommendation on what they've already told you. When you do it that way, they'll feel heard. They'll think "they're listening to me. They understand what we're looking for." They're more likely to list with you because you're recommending something they actually want.

Here's an example:

"You mentioned that privacy through the process was important to you, and that you are also keen to secure the best possible price. For those reasons, I would recommend a three-week tender. It's a proven process that allows you to choose your ideal buyer, without any time pressure, while still giving you the opportunity to secure a premium result if it's out there."

How to handle pushback on selling methods