‘Auction’ is derived from the Latin word augeo meaning “increase” and that is indeed what sellers are hoping for when selling their property by auction – a flurry of increasing bids!
The theory behind an auction is sound, all serious buyers present in one room battling it out until everyone’s financial resources are depleted resulting in a sale exceeding the seller’s expectations.
Of course the reality can be very different.
So what should you consider before deciding whether to sell your property at Auction?
- Intense marketing campaign geared towards achieving a result within a defined timeframe – usually 4-6 weeks.
- The circumstances create a sense of urgency for buyers.
- Vendors receive an unconditional contract at the end of a successful auction. The vendor dictates terms and conditions.
- Buyers dictate the market value of your property. No need for educated guessing or accurate market appraisal in an uncertain market.
- Price can be driven up by competitive and emotionally invested buyers.
- Vendors will never know if all potential buyers are at the auction. Some buyers are reluctant to buy a property under auction conditions for a variety of reasons.
- The process is compromised if there is only one buyer present on auction day.
- Often the buyer is looking for a bargain while the vendor is hoping for a premium.
- Ordinarily there are more outlays associated with an auction including the auctioneer’s fees.
- The winning bidder may not have offered their best price.
- Additional pressure on the vendor on auction day.
Selling a property at auction can be an efficient and profitable method of sale and in certain circumstances the most appropriate. An experienced and effective Agent should be able to advise you which method of sale best suits your circumstances and guide both you and your buyers through the process.
Should you like to discuss selling your home, obtain an obligation-free appraisal or discuss possible methods of sale, please contact Kathryn MacDonell of Élan Property Agents on 0413 604 547 or firstname.lastname@example.org.