Excitement. Theatrics. Fanfare. Yes, there is something special about auctions. But selling by auction is more than fun and games – this centuries old method of sale has proven advantages that you may not have considered.
In a rising market, such as what we are experiencing here in Southern Tasmania, an auction is a method of sale that should be seriously considered by all vendors. In our experience, property sellers are focused on three main concerns: obtaining the best price; reducing the risk of a contract falling over; and having the sale process completed efficiently in a timely manner. Auction ticks all these boxes.
Here are the key benefits of selling a property by auction:
Unconditional sale contract conditions
Auctions, unlike some other methods of selling, offer a strict unconditional sale contract. They are not subject to finance or inspections and there is no cooling off period. This means that when the hammer falls, you are assured a successful sale without the fear of the offer falling through.
Control over settlement terms
As the vendor, you can set the settlement terms for the sale. The most popular option is a 30-day settlement period, but you are entitled to nominate the settlement period that suits you.
You set the reserve price
As the vendor, you set a price for the auction, known as the reserve price. Your agent will help you determine the best price, but ultimately, you are able to set the price that you feel comfortable with.
Make the most of a competitive market
With a proper lead up to the big day, the auction campaign can create a sense of excitement and competitive friction between buyers. On the day, the buyers may be more likely to bid higher in the exciting and competitive atmosphere of an auction.
There are certainly benefits for the buyers as well. There is full transparency in multiple respects. The buyers can see the terms of sale up-front and do not have to negotiate contracts or terms. There is also no waiting and hoping that their offer is accepted, as everyone’s offers are out in the open and each buyer can make their decisions based on the prices offered by competing buyers. And finally, the successful buyer is assured a streamlined settlement process that has been predetermined in advance. On the fall of the hammer, the property is SOLD to the successful bidder!
Make the most of the benefits of selling by auction
When working to sell a property by auction within a tight campaign period, it pays to work with professionals who understand all the ins and outs of the process. An experienced property representative will help you make strategic decisions around marketing, styling and contractual arrangements in the lead up to the auction. These steps all play an essential role in ensuring that your property gets the maximum exposure and is sold at auction for the best possible price.