To Auction or Not to Auction
Selling by auction doesn’t limit you if you want to sell privately. It can benefit you instead!
Auctions are just as manageable when selling privately, plus you can appoint a professional auctioneer for considerably less than it would cost by going through an agent.
What you need to consider is your own motives for selling, what works in your area and your time frame (i.e. selling to meet a deadline in order to settle on another property). Many agents will encourage you to sell by auction, not only because it costs more to market auctions, but because they have finite end dates, which allows them to move onto their next property sale promptly. All they see is dollar signs.
But since you’re in control when selling privately, you’re able to consider the best solution for your needs.
Is Going to Auction Right for You?
There is no right or wrong way to sell. So, to help you decide whether going to auction is the right move for you, we’ve compiled a list of the pros and cons to make your choice a little easier.
1- Auctioneer Costs
There will be additional costs with engaging an auctioneer. However, at buyMyplace, an auctioneer will cost you considerably less than via traditional agents.
2 – Marketing Costs
Advertising costs are usually more expensive for an auction when engaged via traditional agents. However, at buyMyplace, it costs the same as private treaty sales cost.
3 – Pressure to Reduce Your Reserve
Agents may pressure you to reduce your reserve price to secure a sale. However, because you are in control when selling privately, you can escape this stress to a certain degree.
4 – Auctions Aren’t Universal
Unfortunately, auctions won’t work in some regions, especially in some rural areas where there are high rates of passed-in properties.
1 – Going, Going, Gone
If all goes to plan, it will be over when the auctioneer yells “Sold!” Auctions create a sense of urgency and competition among buyers, which can increase your sale price.
2 – No Cooling Off Period
At auction, once the property reaches the reserve price, it will be sold, and the sale is unconditional. Vendors can also specify settlement terms to suit themselves.
3 – Arguably Higher Prices
Vendors take security in knowing the property must reach a minimum “reserve” price before it can be sold. Since there is no cut-off price, the result could substantially exceed the reserve price.
4 – More than One Way to Sell
Auctions create different avenues to sell. Buyers might make an offer before the auction to avoid the stress auctions present. You may choose to accept the offer or continue as planned. If your property is passed-on, you can then negotiate with highest bidder afterwards.
No matter whether you decide to sell by auction, it’s beneficial to have as much control as you can over the process of selling your home.
Still have questions? Let’s chat! Give us a call on 1300 289 697 and we can talk through all your options.