An auction is one way to sell a home, and it can be advantageous to the vendor (seller) to use it in certain circumstances. In this article we will look at the advantages & reasons for doing so.
Circumstances that suit selling a home at auction
• You need to sell your home in a given time period.
• You really don’t know what the current market value of your property is, and you don’t feel that there are enough historical comparable sales to make that known, even to a professional valuer.
• Current market dynamics are generating a lot of activity and excitement that you feel you could build on.
• Your home is very unique, and in high demand. It’s likely that people bidding against each other could drive the price higher.
Benefits of selling a home at auction
• It’s a good way to achieve the real market value of a home as its selling price.
• An auction places a bottom limit on the price (the reserve price), but no upper limit
• Auctions put pressure on the buyers to act promptly.
• Auctions are highly publicised
• With an auction there is a planned marketing approach. This is generally better than haphazard advertising of a property without any particular focus.
• Marketing costs are clearly identified up front with little likelihood of a cost overrun
• Auction psychology dynamics prepare people for the event and get them to an emotional high as they make their final decision
• A purchase near the time of an auction has no cooling off period
• A property can still be sold before or after the auction
• Should the property not sell at auction, people with a serious interest have been identified
Given that you are selling a home, you may have some borrowing matters to consider, either in the repayment of an existing loan and/or obtaining a home loan for another property. The friendly credit managers at State Custodians Mortgage Company are more than happy to assist. Give them a call today on 13 72 62.