Latest Proptech Delivers Best of Both Worlds
First National Real Estate Burnie will open a new era in property marketing when it becomes the first agency in the Apple Isle to use a new online selling system this October.
The online selling method known as ‘Openn Negotiation’ delivers more transparency and flexibility to property marketing and will be used by Jenna Lamprey and Andrew Miles for the sale of two properties, 175 Bass Highway, Cooee and 15 Malakoff Street, Somerset.
The system combines the advantages of auction with the flexibility of a private treaty sale, thereby offering the best of both worlds.
Open Negotiation works by inviting buyers to submit offers, with conditions of their choosing, in the lead up to a predetermined date of purchase (a little like a tender). If the seller approves their terms and conditions, they can then participate in the open negotiation of the sale price via the ‘Openn’ app.
Participating buyers are asked to submit an opening bid. The opening bid then sets the advertised price for the property and if a higher bid is submitted than the first one, this becomes the new advertised price.
The appeal of open negotiation is that it is a transparent method of sale, which allows buyers to view all other buyers’ bids, the number of bidders involved and how much time they have left to bid. This continues until a final unchallenged bid is made that is above the reserve price.
It’s a bit like an auction, except each buyer has the right to have pre-agreed different conditions of purchase, which is totally unlike an auction.
It also differs from the common private treaty ‘for sale’ method by revealing the price of each buyer's offer to all other participating buyers. When buyers compete for a property under private treaty, the details of each offer are usually kept confidential. Open negotiation on the other hand is completely transparent for all parties.
The sales team are very excited to be pioneering the method of sale in Tasmania because the system has been well-proven within the First National Real Estate network in Australia, so we know success for our clients is assured.