Selling by Auction
Auction is a process whereby your property is promoted for its merits without the deterrent of mentioning price. Your property is “marketed”, not just listed for sale. Auction is one of the oldest and most successful forms of selling, with a history of proven success. There are numerous advantages with the auction process:
You have a catalyst to entice buyers to act rather than procrastinate. An auction is the quickest and most effective way to sell a property. The pre-determined date of the auction eliminates buyer inactivity and creates positive action by putting a time limit on negotiations. Your property receives greater buyer exposure because it becomes a priority.
It allows you to assess the market’s response before announcing your asking price. It allows the property to be promoted with high-impact advertising over a short period of time. It allows the property to be promoted without a price. Consequently all buyers in the market will come to have a look and none will disregard it due to price.
The Benefits of an Auction
As the price is not revealed, the buyer’s evaluation of the property is not affected by thoughts of “how much less will they accept?” With an auction, the bidding starts at a point and increases. With other methods the reverse is usually the case. In many cases an auction will attract more enquiry in its first week than a property being promoted with a price does in a 3 month period.
An auction allows you to set the minimum price acceptable to you and encourages competition to ensure you have the best possible opportunity to obtain the maximum price. Unless the bidding reaches the reserve price or more, the vendor is under no obligation to sell.
Auctions increase opportunities
Auctions maximize the number of opportunities to sell – prior to auction day, on auction day, or after the auction. At all times the decision is made by you. A credible sense of urgency is created, enabling the agent to clinch a buyer. The shrewd buyer playing a waiting game is forced to act promptly through fear of missing out. Suitable predetermined “Open for Inspection” times can be arranged to suit you and/or the occupants.
You have the potential of finding a buyer with a strong emotional interest in your property (an emotional buyer will generally pay a much higher price than a shrewd investor). There is no waiting period for contracts to become unconditional because of conditions imposed by purchasers. Contracts are signed the moment a sale is negotiated, with cash settlements in thirty days.
Buyers are forced to have their finance pre-approved so that they can buy without making an offer subject to finance; thus eliminating delays afterwards. Auctioning your property gives you the best chance of receiving the best result in the shortest period of time.Â
