Selling a property via auction is becoming increasingly popular in Australia.
So what are the benefits, and how do you ensure that you get the best auctioneer working for you?
There are six main benefits to selling your property via an auction:
Premium Price. Auctions create a competitive bidding environment and have the ability to establish an emotional connection between the property and the purchaser in a short period of time which in turn will escalate the house value, and therefore achieve a premium result.
No Price Capping. Advertising with a price potentially eliminates buyers that may have otherwise stretched themselves under a competitive environment to buy their dream home. Auctioning your property takes price out of the equation.
Creates Urgency. Having a set date creates the urgency for a prospective purchaser to be organised for auction day. If a buyer inspects the property seven days prior to auction day then they have seven days to be ready to perform and make a bid.
High Impact Advertising. This gives you the opportunity to attract maximum amount of purchasers in a minimum amount of time. It also gives buyers more of a chance to see the advertisement, recognise it, and develop an immediate emotional connection between the property and themselves as a buyer. You never get a second chance to make a first impression.
Structured Selling Plan. Having a set date creates a structured selling plan in which to achieve a sale either prior to auction, at auction or post auction. It gives the vendor and agent clarity on their roles in the selling process.
Immediate Exchange / Unconditional Contract. An auction gives you an immediate unconditional contract with no cooling off period. Once the hammer falls a buyer is bound to the contract and an immediate exchange then takes place.
Choosing an auctioneer
Although you may have already selected the real estate agent that you want to sell your home, you can also have a say in which auctioneer they use.
Although most agents will have a preferred auctioneer, as the customer you need to be content that this person is right for you.
So how do you choose an auctioneer?
Firstly, it’s essential to ensure they are competent and qualified. Try to select an agent with multiple successful auctions under their belt and don’t be afraid to ask them exactly what their track record is like. First timers may be enthusiastic and positive but may not have the skills and experience to get you the best price possible.
By visiting the website of your local real estate institute, which can be found by visiting www.reia.com.au, you can get a list of auctioneers who are Institute members. This means they operate to certain standards and are suitably qualified.
Talk to the auctioneers. Ask them for a breakdown of how they would promote your house and their personal preferences regarding the auction process. Ask them for evidence of their track record.
Attend an auction being run by your preferred auctioneer to see how they perform “live”. You want an auctioneer that is professional, engenders excitement and urgency, and works hard to ensure the very best price is achieved.
Summary
Auctions can be a great way to sell your property. Provided you do your homework and choose the right agent and auctioneer, it can make the selling process much shorter whilst still achieving a good price.
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