Auction, in my view, is the best way to sell property. Unlike the one phase process of private treaty – list property with limited marketing – an auction is a three phase process:
- The First Marketing Phase
- The Event (Auction Day)
- The Second Marketing Phase
An Auction gives the most accurate market price in a competitive forum.
Five benefits of the auction process are:
1) Serious Vendor
Many properties can be listed for sale through various forms of advertising (internet, newspaper etc), however these properties may never receive any, or little enquiry. Most markets are currently characterised by an increased number of properties for sale, and with fewer qualified purchasers.
If “target marketed” correctly, the auction process will capture increased purchaser enquiry and decrease the time to sell the property. You will be dealing with serious buyers.
2) Reduces The “Days On Market”
Statistics show that the auction process significantly reduces the time to sell the property when compared to the private treaty process.
Using the current high supply and low demand characteristics within many markets, a correctly targeted auction campaign will always increase the amount of purchaser enquiry, thereby allowing the Vendor the chance to have a competitive buying and bidding environment via a deadline process.
3) Structured Selling Plan
The auction process is just that – a process! Your agent will explain the whole process from start to finish at the commencement of the targeted auction campaign, and will keep you informed all of the way through.
4) Competitive Bidding
We have all seen auctions where there are multiple bidders who compete for the purchase in the open forum auction environment. As a Vendor, why not engage an auction strategy which will allow this to happen.
When a property is unique and “highly sought after” (therefore low supply and high demand), the auction process will ensure competitive bidding. Conversely, if a property is within the low demand, high supply category, the auction process will allow your Agent to capture the qualified buyers and use the deadline of the auction to transact the sale sooner.
5) Unconditional Exchange
Cash, unconditional. Not subject to finance, building & pest inspection and cooling off period when the property is sold under the hammer.
If the property doesn’t sell under the hammer, you are increasing your chances of receiving an unconditional exchange by capturing more qualified purchaser enquiries.
Source: Perella Auctions