The Auction Advantage

The very best means of achieving a premium or fair market value for a property within a specified time is Auction.  The deadline for the sale creates a sense of urgency among buyers and sales consultants alike.

Auction involves a short, sharp and intensive marketing campaign of a property without a price. Our objective is for the seller to have the highest price possible offered for their property by the end of the auction campaign.

A well-run auction programme may take more time and effort for the consultant but will ensure that the property gets the maximum exposure.  It is certainly the method that offers the highest degree of responsibility and control shared between the consultant and seller.

Auction Process

STAGE 1

In the lead-up period high profile auction marketing will highlight the property, producing the greatest exposure during the period when enquiries are likely to be at the highest level.

STAGE 2

The auction itself is the shortest part of the process but it is the best opportunity to sell during competitive bidding in an open arena.

STAGE 3

Post-auction period – some people believe that if the property does not sell on the auction day then the auction system has failed.  This is not true.  Stage three provides opportunity to negotiate with those who may need to sell another property or arrange finance before they can commit themselves unconditionally.

Benefits to the seller

• The seller sets the terms, conditions and deadline.

• This auction-oriented target marketing puts the “spotlight” on the property, adding a competitive edge that strongly favours the seller.

• The property is neither overpriced nor undersold; its value is determined by the market and individual buyers.

• The “no price” aspect will attract more genuinely interested, cash-in-the-hand buyers.

• It allows sellers to plan ahead in the knowledge that a specific date has been set for the sale of their home.

• A cash buyer means the seller can proceed immediately with their goals.

A sense of urgency is created by the set timeframe, bringing interested buyers to a point of decision

• The seller has the option and may decide to accept a cash offer prior to auction day.

• A successful purchase requires a payment of a deposit on the day, equal to 10% of the purchase price.

• If the property is passed in, it will be exposed on the open market as an exclusive listing at a saleable price established from the market feedback received throughout the auction process.

• On top of all of this, the level of service and feedback by their sales consultant is second to none.

Benefits to the Buyer

Buying at auction avoids the traditional offer / counter offer negotiation process.  Everything is out in the open.  If successful, the buyer will have the satisfaction of knowing they have purchased at “true market value”.  In addition:

• A set auction date allows the buyer to better plan and arrange finance, sell their existing property, organise a property check, familiarise themselves with all the auction documents and consult their solicitor.

• They can submit an offer for consideration prior to auction.  All pre-auction offers must be cash unconditional.

• If the property is passed in, their sales consultant can help them enter into negotiations.

“Buyers can be certain they are dealing with motivated sellers, reflected by their willingness to invest in good auction marketing campaigns in order to get a result. Further, anecdotal evidence suggests many of the best properties are taken to auction, so the choice of properties is good.