Commercial RE 50 Q's - Purchase and Sale

Question 1

What are the different methods of sale

Answer 1

private treaty (not informal tender)
Property is marketed openly, to allow potential purchaser the opportunity to treat with the seller
Flexible- parties can negotiate in their own time
Potential for gazumping
Withdrawals and associated abortive costs

Formal tender
go straight to contract on best bids

Informal
If a bid is received late can ask client for instructions

Action
Hammer falls its a binding contract
Must have a deposit on the day
+speed
-fees are typically higher c 2.5%

Question 2

What would you do if you recieved 2 identical bids for a propeerty marketing

Answer 2

Go to a second round of bids

Question 3

What would be YOUR procedure for preparing a marketing report for an asset

Answer 3

Understand clients expectations
Undertake market research to determine what the demand is in the location
Circulate to potential tenants