AUCTION OR NOT – THAT IS THE QUESTION

In today’s market, the question on every home seller’s lips is how to get the best price for their property – to auction, or not to auction? Here is some helpful advice that might make this difficult decision a little easier.

Selling your home can be emotionally stressful, but being well informed about the process and alternatives helps instill a sense of control

What you should remember at all times is that property is a commodity, worth what a buyer is willing to pay for it.

Sometimes, it is better to go to auction to accurately determine market opinion, but in other cases it may be more appropriate to go through the private treaty sale process. Ideally, where there is likelihood that more than one buyer will be found in the marketing period, auction is the viable and preferable alternative. The area’s for this most likely to happen are the area’s in high demand. eg: Central Echuca, River Properties, or something that your property has that no one else’s does.

When there is a lot of housing stock available to choose from, then buyers have a broad range of choice as well as the power to keep prices down.

What an auction does is set a timeline by which interested parties must have completed their enquiries and arranged finance. It promoted decisiveness and allows the competitive nature of buyers to work in your interest. Also, it puts some surety into the process because a sale under the hammer on auction day is water-tight.

But with private treaty sales, there is a degree of risk. Two parties could make offers for a property, but if the chosen party’s finances fall through after you’ve accepted their offer, you either have to go back to the second party in a potentially weaker position than previously, or you have to start the process again.

With auctions, when the bidding reaches your reserve, the property is sold unconditionally.

First National has successfully been selling through the auction process. It’s a result that comes from a combination of having realistic, well informed vendors, effective, targetted promotion of the properties and an agent who understands the local area and auction process thoroughly.

Auctions are good where a vendor is realistic and willing to accept what the market is willing to offer on the given day.

But private treaty sales, in the right circumstances, can prove lucrative too, especially in today’s market at the top end.

This market has been moving more slowly in upper price ranges than the more affordable levels, so it may well be worth considering private sales in this situation.

Selling a home always carries some element of uncertainty – it is how you reduce, or mitigate, that uncertainty that is the key. Some may suggest doing that by private sale, others will swear by auctions. The best advice, though, is to get the best advice – talk to a real estate agent who knows the area and what is working well and what is not.