Know what to expect on Auction Day
Why sell at auction?
Selling your home is a stressful experience. Many sellers may feel nervous about the auction process. We’re here to share our tips on how the auction process can best work for you.
- It Shifts Responsibility to the Buyer.
- In an auction, the buyers must commit to your property before buying it, whereas conditional offers allow them to buy it and then decide if they are committed.
- It Creates a Competitive Atmosphere.
- Auctions generate a sense of urgency and competition among buyers. This can drive up the price, often resulting in a higher final sale price than traditional private treaty sales, as buyers are motivated to outbid each other in real-time.
- It Determines True Market Value.
- By attracting a wide range of potential buyers, auctions help establish the true market value of the property. This is particularly beneficial in volatile or uncertain markets, providing sellers with confidence that they are achieving the best possible price.
- It Creates Urgency.
- Auctions have a set timeline, creating a definitive end date for the sale process. This certainty is appealing for sellers who want a quick resolution, as it eliminates the extended waiting periods often associated with traditional sales methods.
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It Provides Transparency For Buyers.
- The auction process is transparent, allowing all interested parties to see the bids being made. This openness builds trust and can often lead to more aggressive bidding, as buyers can see the value others are placing on the property.
FAQs
Someone told me auctions don’t work. Why should I choose auction?
Setting a date to purchase your property gives buyers confidence that vendors are committed to selling. It also puts buyers into competition, which results in a superior sale price. The method of sale should match your goals. Auction will provide you with the best available price in the market.
Does it matter if I host the auction On-Site or In-Room?
The clearance rates for on-site and in-room auctions differ by less than 1.5%. Choose the setting that highlights your property’s strengths: in-room if it’s tenanted or lacks air conditioning in summer, and on-site if it has a spectacular view. Our data and experience show that buyers will attend wherever necessary to secure a property.
We have a cracking offer. Should we sell prior?
Auction creates competition. If you receive a strong offer prior to the auction that you can’t refuse, that’s perfectly fine. Just ensure the buyer understands they are asking you to end your understanding of the market early and therefore must be willing to pay a premium price.
We don’t have any registered bidders. Should we cancel?
Auction day can be stressful, especially if you are unsure that anyone will place a bid. Our advice is to follow through with the process, offering the property to unconditional buyers first, and then engaging in discussions with conditional buyers. This approach often results in a positive outcome. Remember, auctions give unconditional buyers a ‘15 minute head start.’
Was it a failure if we pass in on auction day?
Did you know that 98% of properties that pass in are sold within two weeks of auction? Following the auction, you can identify interested parties and discuss the next steps, which typically involve pricing the property based on feedback or negotiating multiple offers.
