Auctions - 6 Reasons 'Why'
Auctions are an extremely popular way to sell property, particularly in markets where stock levels are outstripped by demand. The auction process is of course known to deliver the best possible results in the best time frames, yet we find sellers can still be hesitant to utilise this method of sale. There are countless reasons why auctions work, but here are the top 6 benefits that sellers will realise when presenting their property to market using an auction strategy.
QUICK SALE: This first reason many sellers are better off using an auction strategy is the timeframe. An auction campaign almost always guarantees a faster sale compared to other selling methods. When selling at auction, there is a set campaign timeframe of just 3 to 4 weeks and buyers are given a definite deadline as to when they must take action to secure the property. This deadline creates urgency, while the agent has the duration of the campaign to work directly with interested buyers to make sure they are prepared to bid on auction day.
TRANSPARENT: The auction process promises a clear and transparent sale, with courts of law and financial institutions having used auction for decades. Auction is well accepted as the best way to present a property to market and achieve fair market values through the selling process, leaving nothing to chance.
UNCONDITIONAL SALE: Unlike private treaty contracts, an auction contract is unconditional from the moment the gavel falls. This means that you as a seller are not at the mercy of cooling off periods, buyer inspections or finance clauses, instead you are sold and simply waiting out until settlement of the property which is normally 30 days later.
PROTECTION: The auction process can seem daunting, but it doesn’t have to be. Sellers are protected by the reserve price which is set prior to auction and the property simply cannot be sold unless bidding reaches the reserve price or above. This level of protection should appease the minds of sellers, knowing they are in full control on auction day.
COMPETITION: Auctions evoke buyer emotion from the very beginning of the campaign and throughout. The use of professional images, quality video content and well-constructed copywriting motivates buyers to create an emotional connection with the property and this emotional connection is what drives the competition. Buyers have fallen in love and know exactly what it is going to take for them to secure the property at auction.
KNOWLEDGE: We find that most properties that don’t sell under the hammer are often under contract within several days of the auction. The auction process while not resulting in a sale on the day, has given the seller clear and concise knowledge around market values based on feedback extrapolated throughout the campaign and on auction day. This allows sellers to make the best possible decision about their property sale, armed with relevant and real-time market knowledge.
