Professionals Real Estate With more than 14,000 homes for sale in Perth, property sellers have to examine a wider number of marketing options when listing their property for sale. One option could be to auction their home because over the last year Professionals offices throughout Perth have organised a number of successful property auctions.
The use of auctions to sell a home has been the dominant selling method in the Eastern States and is now increasingly becoming popular in Western Australia.
Auctions can be a very effective way of selling your home provided they are used carefully. The biggest attraction of the auction system is that it empowers the homeseller in the housing market.
An auction brings a sense of urgency to buyers who might be interested in a property because it gives a defined date for the sale of the property.
It also adds a sense of competition for the property because buyers are forced to compete for the sale of the property. A number of other benefits for the home seller include:
- There is a fixed date to aim for
- There is a targeted and focused marketing campaign attracting maximum interest
- You do not have to fix an exact price, leaving market interest and feedback to act as the best guide. It is imperative that the reserve set is in line with what the market is indicating to be fair during the lead up to auction day
- Usually you only need to deal with one agent rather than relying on conjunctions
- There is no need to be concerned with finance as the bidder must be finance qualified prior to bidding
- A substantial deposit (usually 10%) is obtained
- If an attractive offer is put forward you have the opportunity to sell prior to the auction
- You do not have to wait for the buyer’s house to sell.
Auctions however, are a marketing tool that needs careful examination by the homes seller before they embark on this selling process. Generally you will find that in an upward moving house market, most homes will sell at
auction for above the reserve price.
Auctions should also be considered if the home owner has an unusual property. For example, if you have a beachfront or riverfront property, it may not be possible to determine the exact price of the property. The land “scarcity” value of the property may only be determined at auction.
Auctions may also be considered by home sellers who need to sell a home by a particular deadline for example an impending move interstate.
Like any marketing tool, the home seller should take professional advice from an experienced real estate agent to ascertain if the sale of their property would benefit from an auction. If the circumstances suit an auction then the home seller could achieve an excellent return from the sale of their home using this selling technique.
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