There are three main property selling strategies that your real estate agent will recommend: auction, tender and private sale.
In Canberra, auctions are becoming increasingly popular. They are a very effective way to sell your home, as the buying community knows you are committed to making an immediate sale. Almost all property types can be, and are being, sold via auction. The old belief that auctions are for sellers in desperate need of a sale has long since passed.
So when should you decide to auction your property over other sale methods? Here are five key elements to consider:
1. Your situation (Timeframe and needs driven)
Most people who have busy lifestyles and want to sell within a certain timeframe, like to limit the need to have people inspecting their house at different times of the week. If you have a genuine reason to achieve a sale with planned property inspections and want to avoid taking your home off the market during the initial marketing period, the auction process could be advantageous for you. It runs to a schedule and it gives you control of the situation. It also avoids you needing to make decisions about offers made in the early stages of the marketing campaign.
2. Time of the year (Best presentation period)
Warmer weather can influence more properties going to auction. However the shift is changing slightly in that the season doesn’t necessarily dictate when you should sell. Even the Canberra winter shouldn’t steer you away from auctioning your property. With online advertising and agent know-how, potential buyers hear about properties on the market much earlier than they used to and you may have less competition for buyers’ attention.
3. Type of property(Most effective sale method)
Whether you have a unit in a complex or a heritage listed home, understanding the buyer demand for your property is a critical consideration when deciding whether to go to auction. Does buyer demand for properties like yours exceed supply? Are buyers willing to pay a premium price to own your home due to its location or position in a suburb that is known to be tightly held? Does your home offer a unique selling feature such as a position backing reserve or an attractive view? For example, if you have a unit in a development of 50 units and there are already 7 units currently for sale and yours is similar or identical, taking your property to auction may not necessarily attract much buyer interest or achieve the result you want on auction day. However taking your property to auction can also be an option if you wish to avoid a pricing war with competing properties. An auction may create a real point of difference. The other key consideration is that the auction process, rather than auction day alone, will determine your success. Your agent will need a comprehensive strategy for the marketing period, auction day and post auction sales opportunities.
4. Your area’s current real estate market conditions.
Whether you are in a buyers or sellers’ market could impact the decision to take your property to auction. Auctions are known to be beneficial for a seller’s market since they can create a sense of competition and excitement. However buyer demand and interest will also have an impact as the more potential bidders on auction day may drive the price over reserve price.
5. The real estate agent that you choose.
The decision to go to auction might also be due to the agent you choose. Do they have a successful history in selling at auction and achieving great results? The agency may also have a strong auction culture of award winning auctioneers which may also influence the decision to auction knowing they are successful in what they do. However a great agent is one who will provide you guidance and work with you to find the best solution based on the factors above. Depending on your circumstances, other methods of sales may be more suitable.
If you would like to know more about the auction process download our ebook - The Ultimate Auction Experience here: http://www.peterblackshaw.com.au/auctionexperience.html