September 13th, 2016

Should I Auction My House?

You have no control over an auction as they are 100% the markets decision. Generally, auctions are great for anything that has a demand. So, for property it could be a property that has potential with the land or subdivision for investors. You also need ‘many’ buyers to make a successful auction.

You still need to market your house
Selling at auction doesn’t mean you can just pop it in a listing and forget about it. You still need to market the property and make it stand out from all the others on offer that day—or in that week.
There will be people who want to view the property, and they’ll want structural reports to check for any hidden costs. You will also need images that show off all the rooms, sizing of the house, and the garden so marketing online and in home brochures is a must. As an agent has experience in selling property, they will help you get the best offer price and work the buyers on auction day.
TIP: Go to an auction yourself and watch them!

You’ll need to be there on the day
If you’re looking at stepping away from the selling, auctioning houses isn’t going to be the best option for you, unless you have someone you trust there. Auctioneers would prefer you to be there to answer some questions and discuss the sale afterwards.

In some cases, your home may not sell for the reserve price. If this happens, the auctioneer will want to discuss whether you will settle for the highest bid. As there may be some questions over deposits and settlements, you need to be there to answer these questions.

Even if your house does not reach reserve the auctioneer will work with the agent to negotiate the sale. TIP: We think its best to have your auction onsite, otherwise it can be rushed if there are more auctions to fit into the day. Plus, people have more of a buy-in when they’re in your property rather than at an auction room with merely a photo.

You’ll get an immediate sale
As long as the auction goes to plan, you will at least get an immediate sale on your home. Even if the reserve isn’t met, you can decide to sell the house anyway (this is a potential option if you set the reserve slightly higher than your preferred minimum).

You may get a higher offer
Bidders can get into a war, this is exactly what you want as it can lead to homes selling for more than the amount you would have listed for! Buyers may even feel pushed to make a good offer on a home a day or so before the auction as they feel pressured that the auction will go well and they want to get the best price possible. This is called a pre-auction offer. But remember, all the other buyers will get notified that the auction has been brought forward and they will need to put their best foot forward, making it a bit like a silent auction.

NB: This article is of a general nature only. Should you wish to seek advice on your property you must speak with a Licenced Real Estate Agent.