Auctions – Great for Vendors and Buyers alike!
| If you are not used to auctions in real estate, they can be a scary process.
But more and more people are finding auctions offer many benefits, whether you are buying or selling. So why should you put you home up for auction? When selling, an auction gives your home a high profile through extra marketing, lifting it above similar homes on the market. You also have the advantage of knowing there is no “subject to finance” clause, or “subject to the buyers home being sold”. On the fall of the hammer you have a cash sale, with a 10% of the bid payable on the day and you know the settlement date. In addition, the time on the market is finite, focusing potential buyers’ attention and eliminating procrastination. Many homes marketed for auction will sell before the day and even if bids fail to meet the reserve, the vendor can negotiate with the highest bidder and still complete the sale. But if there are so many advantages for vendors, what about the buyers? When buying at auction, you could get a house cheaper under the hammer than by conventional negotiations. Offers may be rejected before the auction day, only to have the house sell for less on the day. If the bidding fails to reach reserve, you can then negotiate. The bidding will have given the vendor a realistic idea of the home’s value, so an offer which could have been rejected days earlier could now be considered. The auction system allows you, the “market”, to appreciate the benefits on offer and then determine the price. By doing your research, you can go on auction day knowing what the property is worth, thereby giving you the opportunity to buy at market value. Whether buying or selling, auctions are worthwhile. |
November 22 2010 11:00 am | Uncategorized
Duncan Munro on 22 Nov 2010 at 3:06 pm #
Also Mike, in some areas where the market values have fallen, it’s very hard for agents to tell their potential vendors that their houses are not worth what they paid for them.
No-one wants to loose money. We know as agents that putting a 2007 price on some properties now, will usually achieve nothing.
When you go to Auction a property is put on the market without a price. The auction process, assuming that correct feedback is given by the agent, brings the market value to the property.
It’s often easier for the vendor to come to terms with the current market value, because its not the agent telling him what it is (don’t shoot the messenger) it’s the market.
Agents know that the best time to sell a property is on Auction day as you’re looking at an unconditional sale often achieved in a competition situation.
However, all is not lost if it doesn’t sell under the hammer. We are finding that most of those properties are selling soon after the auction with conditional sales. A lot of buyers won’t come to auctions, a lot can’t come to auctions.
Buyers do not ignore Auction properties. Most of them know, that all the best properties go to auction. If they are looking for something good, they certainly can’t afford to discount a huge section of the market.
Real Estate Internet Marketing on 20 Jan 2011 at 6:20 am #
Real Estate Internet Marketing…
” Auctions – Great for Vendors and Buyers alike! is a great post about Buyers Market Bidding On Real Estate I recently read….