Is an auc­tion right for your prop­erty?

The Weekend Post - Real Estate - - In My Suburb -

SELL­ING a prop­erty is all about choices and mak­ing good de­ci­sions in the cir­cum­stances you find your­self. Yet many peo­ple re­port feel­ing pow­er­less and vul­ner­a­ble which is why the ex­pe­ri­ence is of­ten very stress­ful.

It is for this rea­son that many peo­ple choose not to go to auc­tion just to avoid what they be­lieve will be a stress­ful sit­u­a­tion. That is of­ten com­bined with the feel­ing that real es­tate agents push hard for auc­tions (al­though I must con­fess that I have met many ven­dors that needed a good push!). So how do you de­cide if your agent is mak­ing a gen­uinely good rec­om­men­da­tion or if your fear is cloud­ing your judg­ment?

Here is part one of a two-part se­ries of­fer­ing my ad­vice about the key choices you will need to un­der­stand be­fore you choose for or against the auc­tion process. to your home with a con­densed but in­tense sales pe­riod, sup­ported by a sig­nif­i­cant mar­ket­ing cam­paign. Auc­tions work best when the ma­jor­ity of sales in your area are con­ducted this way.

What most peo­ple wrongly as­sume about an auc­tion is that it is a guar­an­tee of a top sale price. Please trust me when I say, it is not. When mar­kets are boom­ing, de­mand is high and stocks are low – that is when record sale prices oc­cur.

But for the rest of the time, buy­ers are at your auc­tion with the in­ten­tion of grab­bing a bar­gain on the day. Thats why so many auc­tion sales hap­pen a few days af­ter the event – it smartens up the think­ing of bar­gain-hunt­ing buy­ers and helps them un­der­stand their low bids were un­re­al­is­tic, while also help­ing the seller un­der­stand what the mar­ket be­lieves is the true value of their home and come down a bit.

Just know­ing this in­for­ma­tion helps you make a cou­ple of de­ci­sions right there. If you want a dis­crete sale, or don’t in­tend to spend much on mar­ket­ing, then cross an auc­tion off your op­tion list straight away.

If auc­tions aren’t com­mon in your area, scrap the idea.

But if you are re­ally se­ri­ous about sell­ing soon or when you want a sales cam­paign with a very fo­cused time­line and if auc­tions are fairly com­mon where you live, go­ing to hoped po­ten­tial buy­ers won’t notice.

So con­sider your sur­round­ings and note, too, that at an on-site auc­tion it some­times pays to or­gan­ise some “ex­tras” to bulk out num­bers to add to the am­bi­ence.

Gen­er­ally, off-site auc­tions are con­ducted with more than one prop­erty to sell. This is great be­cause a crowd show­ing up to buy is usu­ally guar­an­teed and it en­sures you will have a great visual pre­sen­ta­tion cre­ated for your home. Auc­tion­ing in rooms is also pre­ferred in some mar­kets as it al­lows agents to whip

Auc­tions are not just about clear­ance rates, fran­tic bid­ding and sky-high prices.”

auc­tion is worth con­sid­er­ing.

Home or away is the great auc­tion lo­ca­tion de­bate. On site is great as the prod­uct is on dis­play for all to see and the fo­cus of the sell­ing is on your prop­erty not on a nicer home in an­other sub­urb.

How­ever, auc­tion­ing on site is not rec­om­mended if your home is next to a free­way or rail­way line or un­der the flight path or suf­fers from some other lo­ca­tional burden that you’ve up ex­cite­ment by cre­at­ing very large mul­ti­ple auc­tions at cer­tain times of the year and your sale can ben­e­fit from the good vi­bra­tions. But it can also mean that the room is full of 20 par­ties for one home and no one is there to bid for yours.

The best way to de­cide is to con­sider your own home care­fully, un­der­stand the lo­cal mar­ket con­di­tions and seek a rec­om­men­da­tion from your agent, based on how homes sim­i­lar to yours have sold us­ing the method they are putting for­ward.

A sec­ond-storey par­ent’s re­treat is one of the main fea­tures of this home. It also has a deck over­look­ing the pool and lake views. At­tract­ing in­ter­est: Auc­tions are ef­fec­tive sales meth­ods that try and bring to­gether as many po­ten­tial buy­ers as...

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