What is Openn Negotiation? (see video explanation below).
Following on from our article last week on Steve’s win at the 2019 national Openn Negotiation awards, we have had many enquiries about Openn Negotiation. (Openn Negotiation is now commonly called “Openn” – Yes with two n’s).
What do People Want to Know?
Home sellers are wanting to know what exactly is this Openn Negotiation, How does it work and why should I sell my home by Openn Negotiation?
In Short –
Openn Negotiation is an internet based platform that facilitates real estate sales via the app called “Openn Negotiation” using the auction selling format and private treaty selling provisions.
Auction and Private Treaty
What’s that you ask? Unlike the standard auction format of selling real estate under Openn YOU CAN BE subject to finance approval and other conditions just as in the private treaty method of selling a property.
Seeing the Bids
Under Openn the bids are public *(once a bidder becomes a registered/qualified bidder). For the seller this means that the seller is 99.9 % sure that they (the seller) is/are observing the best possible price at that time that the market has to offer.
The Private Treaty Way
Private Treaty – when using the private treaty only selling process the persons making offers are not aware of the other persons offer levels. Potential buyers are not able to confirm if there are any other offers at all. They rely purely on the estate agent.
Competition Drives Price
Increasing The Price via Competition
Being able to clearly see other bidders bids means that each bidder has equal opportunity to buy the property. The bidder with the most money / highest bid for will buy the property (assuming they place their bids on line and are qualified to bid and that the bid reaches the reserve price).
Ascending Price Levels and Competition
Sellers Can Be Confident they Obtained the best Price The Market Can Pay. This is because by exposing the market and potential buyers to each other’s bids drives competition. This works to increase the bid price. The seller can sees the ascending /rising price level as bids come in from the start of the campaign.
How do you best work the process to encourage bidding on a property?
Speak to Steve Lay – Steve’s experience in the Openn process from day one will ensure and guarantee that your property has the best attention it needs to make the sale process a work. Steve’s success in the Openn format to date shows that.
Starting With a Low Bid & Making the First Bid Public – an example;
Case in point – The seller and real estate agent have agreed that the sale price of a property will be about $800,000. The Openn process has started and the property is marketed for sale via Openn Negotiation.
THE FIRST BID
When a property is listed via Openn no price is set. Interested parties (after viewing the property in person) make their bid on the app. Typically this first bid will be under the expected sale price.
A Low First Bid
The first bid on the property is e.g. $690,000. (remember the expected selling price is about $800,000).
A Bid Becomes Qualified
Once this bid becomes qualified/registered it is able to be seen by the public at large. In this case that bid is $690,000. (Remember the seller and agent believe that the market can pay around $800,000).
Wow that is a low price to start with!?
Low first bids drive competition! If the market thinks it’s cheap more people will visit the property and register to become qualified bidders. In turn pushing up the bid price/level.
The First Bid
How Will The Market Respond to The First Bid?
This initial low bid works to attract more potential buyers than you would normally get by just placing a price or asking for best offer under the standard private treaty method of selling a home.
The Sole Bidder
It only Takes One Bidder to take a property of the market.
It is possible for the first and only bidder to take the property off the market i.e. it is possible to buy the property without going to the final bidding stage / auction day and having to compete for the property with other bidders.
What the sole bidder can do is up their bid until the seller is willing to accept that bid. If the buyers increases the bid to a point where the seller is happy to sell the property the seller can accept that bid on the platform. At this point the potential buyer is sent a message via the platform noting that the seller is prepared to accept the bid. The buyer then clicks the acceptance button to confirm that they are happy to buy at that price level. At this point the property is under offer and taken off the market.
Competition to Buy
If it’s cheap human nature will not allow that to last too long. As each potential buyer can see the other buyers’ bids you can expect that the market will push itself to a level that is as high as the market can go due to the bidding competition. This is in stark comparison to private treaty where potential buyers can not see the other bids or the top offer and are therefore less likely to increase their own offers/bid in order to buy the property.
Do You Want More Competition When Selling Your Property?
If you believe that competition can work in your favour when selling your home then the Openn Selling process is in our opinion is for you!
Well You are in Luck!
If you were to speak to someone about Openn Negotiation wouldn’t you want to speak to someone who is well versed and has great experience in the process? Well you are in luck…
Steve Lay of Lay2 Real Estate is the” 2019 Winner of the Openn Negotiation Agent of The Year” for AUSTRALIA! Yes AUSTRALI. Steve is in your back yard here in Bayswater WA!
Contact Steve Now
Book a time to speak with Steve Lay about how he and Lay2 Real Estate can help you attain the maximum selling price for your property using Openn Negotiation.
Call Steve Lay on 0419 191 100
Click below –
CONTACT STEVE BY THE WEB FOR – CLICK HERE
Everyone wins with Openn Negotiation
Sellers Are Confident
Lay2 Real Estate is now selling more homes via Openn Negotiation. Sellers are more confident that the sale value of their property is reaching its maximum market value. Sellers are left knowing at the end of the process that their agent has achieved the best possible price for their home.
Buyers trust Openn Negotiation as they are competing directly with other buyers, rather than haggling with an agent. Want to know more about Openn Negotiation? Follow the link below or contact Steve Lay on 0419 191 100.
Disclaimer: The above is an overview of Openn Negotiation and parts of the processes associated with Openn based on the experiences and opinion of Lay2 Real Estate.
Example of Openn Negotiation Results
*Note: when the term bid is used it is referring to the bid price potential buyers register on the openn.com.au app. For a bid to be a valid bid, that bid first needs to be a registered / qualified bid. The process by which a bid becomes valid is explained by the qualified Openn Negotiation representative. If you have any questions be sure to contact Lay2 Real Estate when using Openn Negotiation to sell your home in Bayswater and or other suburbs in Perth, Western Australia.
Contact LAY 2 Real Estate today about selling your property.
Call the office on 08 9371 1000 or
Steve Lay on 0419 191 100 or
Ben Silverman on 0487 727 054
CLICK HERE and fill in your details and questions and send in to Lay2.