Auctions

• The marketing campaign is conducted over a pre-determined time frame which delivers maximum exposure in the first few weeks on the market—the time during which a property is most likely to sell.
• You take price out of the equation. Limiting the property to a certain price range also limits the amount of buyers you appeal to. Removing price allows you to attract a wider range of buyers— more buyers leads to more competition. Also when you advertise a price, buyers immediately start discounting and make an offer below the asking price. You have to negotiate down to meet them. Without a price, buyers start looking at a property on its merits.
• Control. When you sell at auction, you set the settlement date, the terms and conditions and reserve price.
• You get a cash unconditional contract. If the property sells prior to auction or on auction day you usually get a cash unconditional contract.
• Auction creates a sense of urgency which motivates buyers to make a decision by a set date.
• You have 4 opportunities to sell;

Before Auction: Buyers can make a strong cash offer to avoid competition on auction day. You can also choose to accept offers subject to finance or subject to sale.

Auction Day: Buyers compete against each other, forcing the price upwards.

Just After the Auction: If the property is passed in, subject to finance and subject to sale buyers have a chance to compete for the property along with cash buyers who were unsuccessful at auction.

Priced for the Market: If the property has not sold, it will be placed on the market at a price determined from feedback received during the auction process.

• Auction day negotiations are conducted in an ethical and transparent environment. Buyers can see what other buyers and prepared to pay and have a chance to increase their bid.
• The seller is able to bid through the auctioneer to keep the price moving upwards (seller bidding) and a good auctioneer can squeeze every last dollar out of the negotiations. (Note: all seller bids must be disclosed during the auction)
• The auction process will bring you the highest price the market is prepared to pay. This will occur whether the result occurs before the auction, on the day or afterwards because of the competitive environments created.
• Properties that go to auction sell in a shorter time frame than those sold using other methods.

WHAT IS AN AUCTION?

Auction is a process which allows interested buyers to make competitive bids or offers which establishes the true market value of a property in an open and transparent process.