When selling a property there are a number of sales methodologies you can use. It is really important for sellers to understand all the different methodologies, not only so they can make a fully informed decision, but also decide which one they are most comfortable with.
This article outlines the top 5 reasons you should consider an auction campaign:
1. The sale is unconditional
If you happen to sell your property under auction conditions the sale is unconditional. This means there is no Building and Pest inspection, no finance clause and no 5 day cooling off period. This is a big advantage to the seller. Contracts with conditions risk falling over due to the buyer not obtaining finance or deciding not to go ahead within the 5 day cooling off period.
2. No price
You market your property without a price. This negates the risk of underselling the property or potentially overpricing it where it risks being on the market too long. Most buyers have a budget in mind when purchasing a property and the fact there is no price means you attract more buyers as they are no turned away by price alone.
On auction day buyers are competing against each other rather than directly against you. The only way to achieve a true premium price for your property is to have buyers competing for it and pushing the price higher and potentially exceeding your expectations.
4. Set time frame and structure
The auction campaign has a set time frame and the date of the auction is set. This creates a sense of urgency and generates more buyer activity than private treaty sales.
5. Reserve Price
You are protected by your reserve price. Before auction day the sellers, their agent and the auctioneer sit down and determine the Reserve Price. If the bidding does not reach the reserve price on auction day you simply don’t sell.
Now - should your property not sell under auction conditions - it's not the end of the world - we simply enter phase 2 and negotiate one on one with buyers that have expressed or shown interest to date i.e. we do what the majority of other sellers do and market the property with a price, however we already have a number of buyers to talk to and negotiate with.
Always putting you first.
Team First National Broadbeach
written by Paul Arnell - Principal