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AUCTIONS IN THE CURRENT MARKET

By Rhyley Foenander

You’ve decided to sell! Which is great.

But the idea of an auction campaign is making you nervous.

What’s the real benefits of going to auction.

Here’s the thing.

There been so much data publicly data about about what’s happening in the property market.

Buyers have the internet at their fingertips and can research and establish the likely maximum price they should pay for your property at anytime.

But the best way to convince potential purchasers to raise their limit, is for them to realise that someone else is prepared to pay even more for your property.

Creating competition is vital to securing the best price

At Ray White, our entire family history has been based on creating competitive situations for our vendors.

Auctions have proudly been part of the fabric of this fourth generation, family-owned and led business since 1902.

This method of sale is one we believe in and have recommended to our clients since then.

We still believe it’s the purest form of selling real estate.

Auction is a method of sale where the market determines the price of an asset in an open forum negotiation, which is essentially what happens on auction day.

Social proof

Buyers can look each other in the eye and see what someone else is prepared to pay for it, and can then decide if it’s worth more to them and continue bidding, all on an open and even playing field.

The vendor has the benefit of exposing their asset to the entire market and maintaining control of the process by only selling should their reserve price be met.

It’s also sold on favourable terms – which means you get an unconditional contract – which gives security to the transaction that what a bidder offers is what a bidder pays.

With other methods of sale, so often the contract price is renegotiated during a due diligence period for example, which might only come weeks or even months after the contract was agreed. It’s not unheard of for conditional contracts to fall over which is deeply disappointing for everyone.

Of course, you can still sell any time before the auction

If you receive a good offer before game day, you can weigh it up. But through competitive bidding and open negotiation on the auction floor, our data proves you will likely receive up to 10 per cent more at auction.

So no matter what state the market is in, an auction campaign, if carried out correctly, gives you the best chance of creating that competition between bidders to achieve the maximum price for the vendor. So what are you waiting for?

At worst, an auction campaign gives you a platform where post-auction negotiations can take place to still achieve the best possible outcome.

Source: https://www.raywhite.com/blog/what-are-you-waiting-for/auctions-in-the-current-market/

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