What makes selling at auction such a popular choice?
You’ve finally decided to make the move. Whether your move is a sea change to warmer climates or to a bigger house a few suburbs away, it’s likely you’ve been considering how to sell your present home to make the most of the current property market. Selling a home usually boils down to two options: selling for a fixed price or selling at auction.
When selling for a fixed price, you name your price (or price range) and wait for a buyer who both loves your house and can afford your asking price. When selling at auction you count on the heat of the moment and a fear of missing out to inspire bidders to buy. What is it that makes selling at auction such a popular sales method, and when is it a good idea?
The Pros: Selling Your House At Auction
If your property is in a high-demand location or an up-and-coming suburb, it’s likely your real estate agent has suggested you sell at auction. No matter if you live in Brisbane, Sydney, Melbourne or Alice Springs, you’ll have a pretty good idea about the suburbs that sell best in your area.
Selling at auction means encouraging good ol’ fashioned rivalry. Setting a reserve price will give you peace of mind but, ultimately, you’ll have to let the buyers battle it out to pay what they feel your property is worth. This can be a great option if you’re selling the ‘worst house on the best street’, or planned infrastructure means that families are flocking to your suburb.
If your property has some unique selling point—think fabulous city views, rare architectural design or cultural/historical value—the excitement and competition garnered through selling at auction means you are much more likely to achieve the value of your property.
The Cons: Selling Your House At Auction
Some owners worry about potential buyers actually turning up to the auction. This is where the anxiety really kicks in! When selling at auction, it’s really important to have a good relationship with your real estate agent. A good agent will communicate with you during the inspection process and right up until the morning (or night) of the auction, they will ensure interested buyers are registered to bid and keep you updated with specifics. They should also be able to allay your fears with statistics of recent auctions in your area: how many houses were sold at auction, how many were passed in? Don’t be afraid to ask for details!
Depending on which state or territory you live in, you’ll be bound by specific rules and regulations. These are easily located on the state government websites, so read up to ensure that these terms suit your circumstances.
Is selling at auction for you?
If you’re still wondering if selling at auction is right for you, contact Queensland Property Experts to discuss the best sale option for you.