FAQ: What are the benefits of selling through auction?
Property can be a complex business. Buying, selling, renting, mortgages and repayments- it can be difficult to get started in the housing world. We’re hoping we can take some of the pressure off and clarify the world of property by answering some of the most common questions about putting homes up for sale.
One of the most frequent requests we’ve had is people asking why so many Australians prefer to sell their homes through auction rather than private treaty. We aim to show you just why this method is so popular in recent years.
Control for the vendor
Sometimes people think that the chaotic nature of an auction means that the vendor has a lot less control over what their property is sold for. This is not the case at all! Reserve prices, vendor bids and unconditional sales contracts all grant the seller a great deal of control over the sale of their property.
Auctions are certainly exciting and full of activity, but as the seller you are the conductor of this unruly orchestra.
One of the unique features of selling by auction compared to private treaty, selling your home through auction can often result in what is known as ‘auction fever’: people allow their emotions to begin to control their wallets and might end up buying your property well above its market value.
This has obvious benefits for you as a seller, and also plays upon any unique features that your home may have. You could find that a particular feature of your house is extremely attractive to two or more buyers, and the competitive arena of the auction brings out a bidding war. CoreLogic Data auction results shows that the median purchase price for a house in Melbourne sold at auction was $835,000, compared to a median private treaty price of $491,800.
The fact that auctions do not have a cooling off period means that once an offer has been made, there is no delay in concluding the sale. A cooling period, depending on your state, can take up to ten days to conclude.
The method is also a lot faster pre-sale as well, as you do not have to organise a series of individual viewings for potential buyers who may not be willing to buy. People who turn up to auction mostly come with a mind to purchase. They are often pre-approved and already have financing options.
For more information on how to put your home up for auction, speak to your local real estate agent today and find out how you can use this savvy method to get the most value out of your property.