What is an Auction?
An auction is a process which allows interested buyers to make competitive bids or offers which establishes the true market value of a property in an open, transparent and public environment, under the guidance of a skilled Auctioneer.
Why Auction real estate?
Real estate auctions have become one of the most popular methods of buying and selling property in Australia, with substantial advantages for both the buyer and seller. Through competitive bidding, auctions have proven to be the best method of establishing the true market value of any type of property.
- High intensity marketing campaign – marketing conducted over a 3-4 week time frame puts the property on a pedestal above other properties to deliver maximum exposure in the first few weeks on the market – the time frame during which a property is most likely to sell.
- Price is taken out of the equation – limiting the property to a certain price range also limits the amount of buyers you appeal to. Removing a price allows you to attract a wider range of buyers – more buyers leads to more competition. In contrast, when you advertise a price, buyers immediately start discounting and make offers below your asking price. You then have to negotiate down to meet them. Without a price, buyers start looking at a property on its merits and price negotiations move upwards.
- Control – in every other form of marketing that is available the buyer is in control, not the seller. The buyer will dictate the terms of the contract (e.g. subject to finance, subject to sale, subject to a building inspection). The buyer negotiates from a position of strength. When you sell at an auction you set the settlement date, the terms and conditions and the reserve price. You regain control.
- Cash unconditional contract – if the property sells prior to auction or on auction day, you usually get a cash unconditional contract.
- Create urgency – auctions create a sense of urgency which motivates buyers to make a decision by a set date.
- You have 4 opportunities to sell:
- Before Auction:
Buyers can make a strong cash offer to avoid competition on auction day. You can also choose to accept offers subject to finance or subject to sale.
- Auction Day:
Multiple cash buyers compete against each other, forcing the price upwards.
- Just after Auction:
If the property is passed in, subject to finance and subject to sale buyers now have a chance to compete for the property along with cash buyers who were unsuccessful on auction day.
- Priced for the market:
If the property has not sold, it will be placed on the market at a price determined from feedback received during the auction campaign.
- Before Auction:
- Ethical and transparent environment – buyers can see what other buyers are prepared to pay and have a chance to increase their bid.
- Vendor bidding – the seller is able to bid through the auctioneer to keep the price moving upwards. A good auctioneer can squeeze every last dollar out of the negotiations (Note: all Vendor Bids must be disclosed during the auction).
- Get the highest price – the auction process will bring you the highest price the market is prepared to pay. This will occur whether the result occurs before the auction, on the day, or afterwards because of the competitive environments created.
- Get it sold faster – properties that go to auction sell in a shorter time frame than those sold using other methods.
There’s no better time than now to take advantage of the rising market and achieve the best price for your home. Competition is strong, and ACTON have the best team of highly trained auctioneers ready to sell on your behalf.
Give us a call to find out more.