Selling a property by private treaty or auction has been a debated topic in the real estate industry for some time, and with the number of auctions in WA on the rise, we look at some advantages.
When selling your property, your agent will generally present you with three selling options: Private treaty, Tender (Expressions of Interest) and Auction.
There are no hard and fast rules about which type of property is more suited to an auction or private treaty sale but if you have ever considered taking the Auction path, there are certainly some aspects to consider.
Advantages of selling by Auction
Competitive Bidding There is no sale price limit when it comes to Auctions. Your property is worth what buyers are prepared to pay for it on the day!
Complete Control The seller sets the terms and conditions of the sale for an Auction so they are always in control.
Protection for the seller The seller is protected by the reserve price. This figure is determined carefully between the vendor and agent and the property will not be sold for less.
Sense of urgency Genuine buyers will have typically viewed the house within the first 2 weeks of marketing. As Auctions have a strict timeline, interested buyers are forced to take prompt action.
Exposure through Marketing The property is usually held exclusively by one Real Estate Agent for a fixed period of time during which marketing of the property is intense and very effective in attracting interest.
Not 1, but 3 chances to sell your property:
- 1. before the Auction- buyers have the opportunity to approach the Real Estate Agent prior to auction day with an expression of interest
- 2. on Auction day- if the reserve price is reached.
- 3. after Auction- if the reserve price is not met, the Real Estate Agent will contact the highest bidder for further negotiations.
Auctions can be a fast, effective and profitable way to sell your property. The most successful auction campaigns in WA often achieve sales figures well above the property owner’s expectations. They have the potential to generate a high level of interest and in turn, create competition amongst potential buyers!