The Advantages Offered by Auctioning
Martin McNamara of Australian Property Monitors touts auctions for enticing buyers before an actual price is set — providing the agent gets the price range right.
“If it’s a unique property or one that will get a lot of interest an auction is the best way to determine the true price. People can come to open inspections and evaluate the property independent of the price — they can develop an interest for the property first rather than being tainted by the price.”
So McNamara warns: “If you over-egg the cake a lot of people won’t be prepared to negotiate. That’s why sometimes if you’re not absolutely confident of the price you’re putting on your property you should take it to auction.”
Auctions require an intensive 3-week lead-up campaign. As an example a $700,000 property can cost $10,000 to market for auction. While initially this is more you do have to take into account that the private treaty marketing period can drag on for months because there is no cut off date and no set program.
One thing an auction does is it gives you the opportunity to get top-dollar. All you need are two interested parties who really want it and you’re away. On the other hand as Louis Christopher says: “The auction price will only be as high as the second highest bidder’s price.”
If you’re considering selling feel free to contact myself Noel Thompson Principal Professionals Logan Lifestyles on 0418 517 525 or to call into our friendly offices at Browns Plains or Waterford for immediate assistance.