Sale by auction can offer significant advantages, especially if you have the right kind of property.
When it comes to choosing between private treaty and sale by auction you need to be absolutely sure your home has what it takes to generate intense market interest.
Auction works best when two or more buyers are willing to compete against each other to secure your home. This is why auction tends to be favoured for properties with unique selling points – perhaps great views, outstanding character features or an especially desirable location. It’s less likely to be as successful for standard suburban homes or units in large complexes.
A sense of urgency
If you’re confident your home ticks the right boxes, sale by auction can offer compelling benefits. The fixed auction date means there is a set marketing period, and this creates a sense of urgency among buyers, helping you to potentially achieve the maximum price.
A public auction also offers an unconditional sale result should a bidder reach the predetermined reserve price. There is no cooling off period so once the hammer falls the buyer can’t back out. The flip-side is that vendors can’t change their mind either so you need to be absolutely sure about the reserve price you set. If a similar property in your neighbourhood commands a higher price a few days later, you just have to wear the loss.
The sky’s the limit
If bidding on your home is spirited, an auction could result in a far higher selling price than you anticipated. Even seasoned agents can be stunned at the sale price some properties achieve at auction, and when this happens the owners would have been significantly short-changed by opting for private treaty.
No one can be sure what will happen on auction day – and a sale certainly isn’t guaranteed. The key is to choose an experienced listing agent and follow their advice on the best way to sell your home.