While an auction property will reveal what the market on a particular day is willing to pay, there is no guarantee your property will sell successfully at auction. So if you are considering going to auction, weigh up the pros and cons carefully.
So if you are considering going down the auction property path, weigh up the pros and cons carefully.
There are a number of reasons why property auctions may not be for everyone! As the market value of your property is decided on the spot at auction, you can never be sure of exactly how much it will fetch. Furthermore, the reserve price is not always met and you then have to decide on how you proceed. If passed in, potential buyers have a better idea of what others are prepared to pay and as a result, could reduce their offer.
Auction property marketing costs, though generally fixed, may be higher than if you were to sell your home via other means. Due to set time frames, and in order to gather as much interest in the property as possible, marketing must be consistent, strong and saturate the target audience of potential buyers within a very limited period.
As the buying process is condensed into this small window of opportunity, it may not always be the ideal time to sell. More interest and a better price may be right around the corner!
After the reserve has been met and the hammer has fallen, itís pretty much a done deal. As auction property contracts are unconditional and generally are not subject to finance or inspection, house auctions may not suit some buyers who are more comfortable with traditional methods of sale where urgency and finality are not so fierce.
Talk to your agent about how to sell your home successfully, including the pros and cons of selling your house at auction.