Should I Sell my Home by Auction?
Should I Sell My Home by Auction?
Auctions are a popular method of sale for Australian homeowners. An auction by its very nature creates a sense of urgency amongst buyers as there is a specific period of time in which the buyer must take action or risk the possibility of losing their opportunity to secure the property. Auctions can be effective as it creates a competitive environment amongst bidders, often driving the offers up as each party tries to outbid the others. This can be extremely advantageous for sellers who have time restrictions and are looking to achieve the best possible price in the shortest period of time.
Let’s look at the pro’s and con’s in further detail.
- Groups potential buyers together setting a competitive environment producing the greatest chance to achieve the highest possible price
- A reserve price can be set so sellers know the lowest amount the house will sell for so they can plan ahead
- Generally this means a fast transaction, with sales being unconditional
- Limited time spent negotiating between seller and buyer
- Sellers might receive a pre-auction offer before auction day
- Undertaking an auction campaign can take up to four weeks or longer
- It’s generally more expensive as vendors must invest in a robust marketing campaign as well as an auctioneer on the day and there is no guarantee of a sale to recoup costs
- Once the hammer falls, there is no cooling off period for the buyer or seller
- Lack of privacy as sellers must make their home available to buyers, their building inspectors and the general public in the lead up and on the day
It would be wise to speak to your Stockdale & Leggo agent about the best selling strategy for you as everyone’s personal circumstances vary and your agent will be best placed to advise on the most effective method to suit you.