New property concept

I see that estate agents Jawitz Properties has come up with a new method of selling property... Interesting method. The press release is below... What's the view on this offering?

Jawitz Properties Launch New Sales Methodology
4 February 2009

In response to the slower home sales, falling prices and the increase in the number of urgent sellers, Jawitz Properties have introduced a new method of selling property in South Africa and which is currently used internationally in countries like Australia and New Zealand - Sale by Private Tender.

Says Jawitz: ‘We are seeing more urgent sellers currently than for some time. Even though rates may be coming down, some homeowners are still wanting to move into a more affordable property or may be immigrating and the departure time is drawing nearer or have bought subject to selling their home and need to sell quickly’

Sale by Private Tender gives sellers the opportunity to meet these deadlines and still achieve a market related price within a limited time period. As compared to the normal selling method currently used in South Africa, there are limited viewing days and offers have to be submitted by a specific day and time in order to be considered. From a time point of view, this works for the seller.

While buyers may have a shorter time to make a decision, in the current market, an opportunity missed is an opportunity gone. While the limited viewing times is the same as auctioneering, Sale By Private Tender avoids the ‘firesale’ approach buyers often bring to an auction looking for bargains.

The advantage to buyers of having a specific cut-off time is that all offers are received and then submitted to the seller who then has an opportunity to look not only at the price but also at the quality of the offer. This is especially important at the moment given the banks current tough lending criteria. There may be reserve prices on some of the properties says Jawitz but the seller can then counter offer in the normal way. “We’re excited to introduce this new sales methodology to the market and we’re confident that it will work for clients who are open to the realistic price the market will pay. Even though prices have dropped in real terms over the last year to create better value for buyers in the market, there are still very few bargains. Unlike an auction, buyers are not aware what price they’re bidding against and will put forward their best offer” says Herschel Jawitz, CEO of Jawitz Properties.