WHY & HOW AUCTIONS WORK
Why Sell By Auction?
Selling your home via the auction method truly is the most complete and effective way of selling your home. As always and with any method, it is crucial to have a great agent in your corner who has a proven track record of running great campaigns.
Achieve The Highest Price
The beauty of the auction process is the ability to bring buyers together in a competitive arena where the highest price can be achieved.
The Auction Process
The auction process, when correctly executed, really does provide the seller and the buyer with the ability to get great results without lengthy conditions. In order to generate a ‘best possible’ outcome, an effective agent will spend the weeks in the lead up to the auction generating as much interest as possible via personal and company databases, a well thought out and planned marketing strategy, and going ‘old school’ with efforts, speaking to as many people as possible.
We often see properties that sit in an active market, achieving lack lustre results due to a private treaty marketing strategy. Homes that are sold via private treaty are often marketed with a specific price, giving the owner only one way to negotiate and unfortunately, that is usually down. Conversely, the auction method enables the effective agent to take the price off the property and enable buyers to determine the price based upon comparable sales in the local area and up to date market information. It is also advised that the agent discloses a general buying range in order to attract the best possible buyers.
A popular argument against the auction method is the advertised clearance rates, especially in Queensland. The truth that these clearance rates doesn’t highlight is that the majority of auction properties sell very shortly after the auction as the method exposes the buyers to the property and enables the owner to then negotiate at the most attractive level to the market.
Be In Control
So in summary, in partnering with a great agent, you are able to control the process. You have the option to sell prior to the auction if the buyers want to be ahead of the competition and remove the property from the market. You can sell on the day with a good crowd, a great auctioneer and ample interest; and lastly, if you don’t get the result under the hammer, you can sell soon after to a ready bank of interested parties.