Professionals Arthur Johnston Snowball
256 York St Albany
(08) 9841 1777
(08) 9842 5818Contact us
AUCTIONS WITH PROFESSIONALS ALBANY
Have you ever thought about selling your property at auction? Would you like to know the pros and cons of this well known, yet often misunderstood method of sale? We hope this quick guide will help…
WHY GO TO AUCTION?
There are plenty of good reasons to take your property to auction. The main ones are as follows:
3 opportunities to sell – prior to auction day, at auction, and post auction.
Let buyers fall in love with the property first, worry about the price second. Buyers are not put off by the price in the first instance and will often pay more once they have some “emotional commitment” to the property.
No ceiling on the price – let the competition determine and drive up the price.
Seller sets the terms of the sale, not the buyer – sale date, deposit, conditions and settlement time frame.
The most transparent method of sale – sellers can see the level of interest and competition and buyers can see and hear who they are competing against.
Cash, unconditional contract – why wouldn’t you want to deal with “cash” buyers first? Only consider “conditional” offers if the property is passed in.
Sellers receive true market feedback from buyers to set an appropriate reserve price.
Set time frame for the marketing campaign. This creates a sense of urgency for buyers and also gives the sellers certainty with regard to home opens etc rather than “we will just open it up every weekend until it sells”
Shorter selling time – properties listed for auction generally sell much quicker (around twice as fast) than private treaty, particularly in a slow market.
ARE THERE ANY NEGATIVES WITH AN AUCTION?
Most perceived “negatives” with auction can be overcome:
Too expensive for the seller – an auction doesn’t have to cost much more than private treaty – the selling fee is normally the same, marketing maybe a little higher due to extra exposure plus some auction day costs but if it’s worth doing, it’s worth doing properly.
Buyers will be put off by tough conditions – it doesn’t have to be 10% deposit, 30 day settlement – reduce the deposit and give some flexibility to the settlement.
Buyers won’t bid on a “cash, unconditional” basis – they will if they want the property, they just need to get organised.
If it doesn’t sell at auction, it is a failure – this definitely not the case! Auction is a process, not a “day”. Selling “under the hammer” is great, but very often terrific results are negotiated at the conclusion of the auction.
It’s not the right property – most properties will attract competition if they are marketed correctly.
The market is not right – we have had terrific success in the best and worst markets – there is no “right” market.
Talk to the most awarded Auction Team in Albany – Professionals Arthur Johnston Snowball.