Selling by auction

An auction is one of the most efficient methods of selling a property through the process of public negotiation. Selling by auction is a fair and sensible method of sale because it enables you to thoroughly test the market and obtain the best possible

If you are selling a property by auction, you will need a sole agency agreement with a sales consultant, have an agreed marketing plan and establish a reserve price in advance of the auction.

Advantages of selling at auction

• Sense of urgency: The auction day deadline sets a finite selling period and creates a sense of urgency amongst buyers
• Buyer competition: An auction creates the conditions for competitive bidding which can lead to a figure in excess of your market appraisal
  
• Options: You remain free to consider any pre-auction offers before auction day, if you choose to Pre-set inspection times: Are created to best present your property to buyers and to minimise inconvenience to you
  
• Certainty: Bidders are cash buyers and must bid on an unconditional basis, so there are no complicated conditions and contracts are signed immediately should an acceptable offer be received
  
• Control: You are in control – you set the reserve and select the possession date that suits you. If the bidding does not meet the reserve price, you are not obliged to sell
  
• Market feedback: Your sales consultant will provide regular market feedback to assist you in setting the reserve price of your property
  
• You set the reserve: The reserve price is set by you and is not disclosed prior to the auction, therefore attracting a wider section of the buying market
  
• No price limitations: By marketing without a price you are never limited by an asking price that is too high or too low, so you can attract a wider range of buyers.
  

Your role on the day

If you are in town, it is recommended that you attend your auction. It’s great to have you available if there are any last-minute questions that need to be cleared up.

Your auctioneer will also want to confer with you depending on how the auction is going. If the bidding stops below your reserve price, for example, your auctioneer will want to discuss next steps with you.

What properties sell best at auction?

All properties can be sold effectively by auction, but the decision usually comes down to the type of property you have and the current market.

Some examples of types of properties and circumstances why this method of sale is commonly used are:

• Higher-end and luxury properties
• Unique properties
  
• If you have a definite time frame to sell in
  
• Your property is attracting a lot of interest
  
• Your property is in a desirable location
  
• Your property is new to the market
  
• You are selling a deceased estate
  
• You are selling due to a matrimonial split
  
• You have found it difficult to set a selling price
  

How should I prepare for my auction?

Marketing

When it comes to marketing your property before auction, the rule seems to be more is more. The success of your auction can be largely dependent on your marketing campaign.

We make it our business to ensure that your property is shown in its best form to as many people as possible. We’ll identify the key target markets for your property, and help create a marketing strategy that suits your property, as well as your budget and timeframe.

Reserve price

It’s important for you to understand and be clear on what your reserve price is, and how it’s used during the auction. Your auctioneer should be able to explain this to you in detail and they will work with you to ensure you get the best price possible for your property