An auction is a public sale, usually conducted by an auctioneer or a qualified real estate agent and is governed by strict rules. It is advertised or a specific place, time and date and prospective buyers bid for the property with the property being sold to the highest bidder.
But what are the benefit of selling by auction?
Benefit 1 – Quicker sale and shorter marketing campaign
A typical auction campaign runs for 3-4 weeks and consists of a high intensity marketing strategy focused on reaching the most amount of people in a short period of time
Benefit 2 – The most transparent way of selling
The fact that an auction is happening in real time gives buyers piece of mind that the bidding and sales process is 100% transparent and that the sales price reflects true market value.
Benefit 3 – Unconditional sale
When the gavel comes down the property is sold, there is no cooling off period – the buyer is legally obliged to buy your property.
Benefit 4 – Vendors are protected by the reserve price.
You set the reserve together with your real estate agent and you don’t sell unless the reserve is met or you are happy with the highest bid.
Benefit 5 – Competition fuels emotion and drives a premium price
If more than one person wants to buy your property, the competitive nature of an auction can cause people to bid higher than they originally wanted to, often leading to a much higher sales price.
Benefit 6 – High chance of an early sale
When competition is high, buyers often feel the urgency to put a pre-auction offer in, which can mean you sell for a great price without even getting to auction.
Benefit 7 – Easy negotiation after auction if the property passes in
If the property doesn’t sell at the auction – don’t worry as your agent is an expert at negotiating successful sales after auction. In my experience nearly all properties sell at, or immediately after an auction.
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