Selling at Auction

Selling at Auction
Marketing and selling your property by Auction is a viable alternative to Sale by Private Treaty and provides you with three opportunities to sell; Prior to Auction, “Under the Hammer” or Post-Auction.

There are many advantages in marketing your property by Auction. For example: the non-disclosure of the “ceiling price” usually engenders greater buyer enquiry and competition for your property within a shorter period of time.

A sale prior to or at Auction delivers an unconditional contract with desirable settlement periods.
The fear of losing a property in competition sometimes leads buyers to pay over and above what would ordinarily be considered fair market value.

Not selling “Under the Hammer” is no big deal. Remember, the Auction process is much more about the marketing campaign in the lead up to the Auction day than it is about the Auction day itself.

For mainly contractual reasons, less than 5% of property is sold by Auction in Western Australia and it is common for properties to be “passed-in”. Indeed, it could be that some properties attract no bidders at all and are passed in on a vendor bid. For a variety of reasons, many buyers are unable to buy under Auction conditions and seek to negotiate a sale after the Auction. Certainly, it is our experience that the majority of properties that fail to sell either prior to or on the day, sell within the fourteen days following the Auction.

FAQ’s

I’m told Auctions are expensive, is that true?

Other than the Auctioneers fee, a marketing campaign that includes an Auction costs you no more than a 90-day Sale by Private Treaty method of promotion.

Is selling by Auction stressful?

Not really. The lead-up to the Auction day normally involves opening your property for inspection each weekend and the anticipation of Auction day can lead to a few nerves but generally, the whole affair is only as challenging as Sale by Private Treaty.

What if my property doesn’t sell on the day?

If your property is passed-in, efforts move to negotiating with those buyers that were not in a position to bid on the day. Beyond that, your property adopts the Sale by Private Treaty method and offers are actively sought.

Does my property suit an Auction?

Any property can be offered for Auction. The broader market conditions, the style of your property and likely level of demand are all factors if deciding whether an Auction is right for you.

A number of people seem to be selling by Auction, is this a passing trend or recommended in the current market?

An Auction certainly increases the profile of the Selling Agent and accounts for some of the increased Auction activity. Because of the flexibility of the “Offer and Acceptance” methods of selling, property Auctions are likely to remain a small proportion of sales in WA into the future.

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