Selling Property at Auction – the Benefits

by Jones Ballard In Uncategorized

30. October 2015 08:34

When it comes time to make major financial decisions, people want to explore all of their options. When we’re buying a new appliance, we’ll shop around for the best price and when we’re looking for a new car, we make decisions about financing. 

Selling property involves one of the largest financial transactions that many of us will ever face, so understanding our options is important here too. One of the more popular strategies for selling property is going to an auction. Today we’re going to explore all the ins and outs of auctions, and determine all the major benefits that they present to sellers. 

Why Choose Auctions?

Before examining the major advantages of auctions, let’s examine the process itself to understand why a real estate agent might suggest one for you. 

The best method for selling your property will depend on a number of things. These include the kind of property you own, its location and current market conditions. An auction might be right for you if you want to create a sense of urgency in buyers, or streamline the negotiation process. 

Generally, auctions will take place under the following conditions: 

  1. An auctioneer is hired – either by you or your estate agent – and they conduct the entire process
  2. The details of your auction are advertised so that bidders can come and compete for the sale
  3. The house is sold to the highest bidder, assuming that your reserve price – the minimum amount you will accept – has been reached (or hopefully exceeded!)
  4. If the reserve price isn’t met, the property is ‘passed in’

Now that we know how the process works, let’s examine some of the major advantages of auctions. 

Value isn’t Black and White

When it comes to auctions, mystery can be one of your biggest advantages as a seller. In auction situations, potential buyers aren’t made completely aware of your price expectations. This means there is no perceived ceiling on the value of your property and it also makes it more difficult to compare with other properties in the area. Coupled with the competitive nature and sense of urgency that auctions create, this can be a powerful way to get the most value out of your property. 

The Reserve Price Protects You

At auctions, the reserve price acts as a sort of security blanket, allowing you to set a realistic minimum target. You can work hand in hand with your estate agent to set this price, and it is usually determined through research that is gathered during open houses. 

You Control Your Spending

Marketing your property is one of the major factors in achieving success on auction day. When it comes to auctions, you can control how much or how little money you want to put into your advertising. Simply consult with your expert estate agents to determine the best marketing plan for you.

Other Major Benefits

The advantages of auctions don’t stop there. Consider these quick points too: 

  • Early sales can occur when buyers detect strong competition
  • Contracts of sale are usually ‘unconditional’, meaning a fast settlement for you
  • Homes that stand out from the crowd in some way usually thrive in the auction environment

If you’re looking to auction your property in Perth or you’re not sure of the best method for your home, contact the real estate experts at Jones Ballard. As your local property experts, we can transform homes for sale into financial successes for buyers. Call 08 9474 1533 or complete our online enquiry form.


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