Is an auction right for your property?
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...