Should I sell my house by auction, is not a question to ponder lightly.
If you think that selling your house by auction might be right for you, please consider the following tips on the whys and wherefores and what to expect.
Getting your timing right
Whether to sell your home by auction or not is principally a question of timing—both yours and the market’s.
If your time to sell is limited by a short, fixed deadline, then selling by auction may be a better way to go than the most popular method of selling—by private treaty. For a comparison, take a look at my previous article, What is the Best Way to Sell My House in Adelaide’s West: Private treaty or auction?
As to the property market, the critical factor is whether it is buoyant or flat at this particular moment in time.
In a buoyant market buyers compete against each other for the best properties, which can favour sellers and make sale by auction a good option.
While in a flatter market, buyers are more likely to be bargain hunting, putting them in a position of power, particularly for homes being sold by auction.
You will need advice from an experienced real estate agent on the current state of the property market.
Does your home have wide appeal?
Another contributing factor to deciding whether or not to sell by auction is the demographic to which your property is likely to appeal and whether it has any unique desirable characteristics.
The larger the demographic to which your property can be marketed and the more distinctively appealing it is when compared with others for sale in the area, the more likely it will attract competitive bidding at auction.
Rely on your experienced local real estate agent’s advice on these determinants of supply and demand to assist with your decision-making.
Should I sell my house by auction? Remember that facts reduce fear
Sale by auction can be intimidating, unpredictable and quite nerve-racking for both sellers and buyers, particularly if they have had little or no experience of the process.
This is why your best option is to choose a real estate agent with experience in the auction format but no vested interest in "pushing" you one way or the other.
Our Principal, Paul McGrath, knows all about the auction process and you can get a taste of this by watching him in full flight auctioning on national TV.
For some background on that auction, read, Paul McGrath conducting a live auction in Woodville South on Sky News.
Helping you name your price?
If you do decide to sell by auction, an experienced real estate agent will demystify the whole procedure for you and help resolve any concerns you may have.
A key decision, which you will make together with your agent, is to set a reserve (or minimum) price.
If the bidding fails to reach your reserve price, your property will be passed in at auction (i.e., has failed to sell).
At this stage you will have incurred the costs of marketing your home and the services of a professional auctioneer, without achieving a result.
All is not lost
All is not lost, however, as buyers who were too nervous to bid competitively, or who had not been able to obtain approval for their financing in time for it could well make satisfactory offers after the auction.
Over forty-five years McGrath Real Estate agents have helped many clients achieve timely and successful sales through the auction process.
We have the track record and proven systems to attain for you all the benefits of selling at auction while minimising any potential downsides.
Talk to us about whether auctioning your home is the right decision for you, your home and your circumstances.