Wondering how to get the best price for your property in our current hot market? Consider selling by auction.

When the property market is running hot, an auction capitalises on the competitiveness of buyers and often achieves a higher price.

The market is extremely strong in our area right now due the combination of a desire to live here and the lack of houses available for sale. By creating a competitive environment, an auction can drive up the sale price, as well as achieving an unconditional sale on the spot.

Here are some reasons you might like to consider an auction to sell your property:

• It’s harder for buyers to determine the true market value of the property, since they are not fully aware of your price expectations.

• You set the terms and conditions for the sale, which the buyer agrees to by bidding.

• You are protected by the reserve price, so you don’t have to sell if the bidding doesn’t meet your expectations.

• If the property doesn’t sell at the auction, the real estate agent will then negotiate with the most likely buyer to hopefully achieve a good result.

• An auction can make people feel ‘pushed’ to make an offer before the auction day, so you may not even need to go to auction.

• The sale contract is usually deemed ’unconditional’, rather than waiting for the buyer to receive finance or further inspections.

• The competitive nature of an auction can cause people to bid higher than they originally wanted to spend, resulting in large profits.

How does an auction work? 

1. The home is advertised with the date and time of the auction displayed.

2. The auction is conducted by an auctioneer.

3. Potential buyers (bidders) compete against each other, by making increasingly high offers until only one buyer remains.

4. The house is then sold to that highest bidder. This is provided the reserve price (the price that the vendor has specified as being the minimum they will accept) has been exceeded or reached, or if the vendor concedes to a lower price than they originally hoped for.

5. If the home doesn’t reach the vendor’s reserve price, the property is ’passed in’ and the current highest bidder then has the right of first refusal to any further offers.

If you are interested in the process, give us a call to go through the details. You might decide it’s just the thing you need to sell your property in a HOT market.