Auctions find the level of the market…
In my 23 years of selling real estate I don’t think there has ever seen a market that has offered such a diverse range within one regional marketplace. For example, property is in high demand in some areas of the city with upward pressure on values while other locations that are deemed less desirable and safe are struggling to attract even minimal interest and subsequently values are below their pre-quake levels.
The bottom line is the auction process provides the best platform to realize fair market value across the board for any property in any market dynamic, and like water, finds the level of the market.
Benefits to the seller:
- Auctions attract a broad range of purchasers and ultimately discovers the buyer
- Auctions allow sellers to deal with multiple parties in a controlled environment
- Auctions bring certainty to sellers immediately upon the fall of the hammer
- Auctions move with the values of the current market, both up and down
- Auctions rationalize an active market, realizing fair market value
- Auctions provide structure and promote best practice
Advantages to the buyer:
- Auctions empowers purchasers with comprehensive property information free of charge
- Auctions bring certainty to purchasers – overall sellers are more motivated and committed
- Auctions puts all purchasers on the same playing field and provides fair and equal opportunity
- Auctions are transparent and purchasers make a conscious decision to bid to a predetermined level
- Auctions encourage full and open participation, as opposed to the secrecy of multiple offers
The benefits of auction for both seller and purchaser are many, equating to a win/win for all involved and it is my recommendation that when buying or selling that you engage in the auction process when and wherever possible. It is an efficient and professional way to transact real estate.