Auction The very best means of achieving a premium or fair market value for a property within a specified time is Auction. The deadline for the sale creates a sense of urgency among buyers and sales consultants alike.
Auction involves a short, sharp and intensive marketing campaign of a property without a price. This is to test the market to see what buyers, in a competitive situation, are prepared to pay to become the new owners of that property.
Marketing with a price limits what a keen buyer may pay. Once a listing price has been established for a property, a ceiling has been placed on what a buyer expects to pay for it. Auction, on the other hand, offers a real opportunity to get more for a property than the seller might expect. Our objective is for the seller to have the highest price possible offered for their property by the end of the auction campaign.
A well-run auction programme may take more time and effort for the consultant but will ensure that the property gets the maximum exposure. It is certainly the method that offers the highest degree of responsibility and control shared between the consultant and seller. Through auction, buyers are prompted to pay their top price by: The deadline.
Confirmation of value and desirability by other buyers/bidders. Fear of loss to a stronger or keener buyer/bidder.
The three stages to auction There are three opportunities to sell a property using the auction method.
STAGE 1 In the lead-up period high profile auction marketing will highlight the property, producing the greatest exposure during the period when enquiries are likely to be at the highest level.
STAGE 2 The auction itself is the shortest part of the process but it is the best opportunity to sell during competitive bidding in an open arena.
STAGE 3 Post-auction period - some people believe that if the property does not sell on the auction day then the auction system has failed. This is not true. Stage three provides opportunity to negotiate with those who may need to sell another property or arrange finance before they can commit themselves unconditionally.
Benefits to the seller
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