The 5 Key Benefits Of Selling At Auction
Selling at auction is one of the simplest methods you can use when selling a property.
Previously, auctions were considered a way to shift an unwanted or vacant property, but this is no longer the case. Instead, auctions are a popular, fast-paced way to sell real estate where buyers come ready to make a purchase.
What Is An Auction?
An auction is a buying system for selling goods by offering them up for bidding. In real estate, an auction refers to the process of putting your property on the market for buyers to bid, eventually selling to the highest bidder.
If you’re looking to buy at an auction, you can either do so independently, or choose to work with a buyer’s agent, like https://www.wendyrussell.com.au/.
Let’s take a look at some of the major benefits of selling your property at auction.
- Sell Quickly – Reduce days on the market
The first key benefit of selling at auction is the speed at which your property may sell. Selling quickly reduces your overall days spent on the real estate market and therefore suits those who really need a sale as soon as possible.
Once the property is sold at auction, the buyer is contractually obligated to complete the sale by the set date.
The standard completion for a sale at auction is 28 days reducing long term costs for the seller. Furthermore, the sale contract is usually deemed ’unconditional’, meaning the sale will conclude on settlement day.
- Premium Price & Negotiating
The most important thing when selling your property – the sale price! The good news is the seller is protected by the reserve price (minimum price) and their sale terms and conditions. If the property does not sell at auction, the agent can contact potential buyers and begin independent negotiations.
- Competitive Bidding
Competitive bidding helps to raise the chances of selling the property at the highest price. A great auctioneer can motivate and excite the bidding crowd creating a sense of urgency to enter into a competitive bidding scenario.
The auction advantage is that the time and date of sale are established well in advance, pushing interested buyers to bid; a situation that private sales cannot duplicate. On average, one-third of sales with estate agents fall through after they have been agreed. Selling by auction is a far more secure way to sell.
- Unconditional Sale
In the case of an unconditional contract, there are no conditions attached to the sale of the property. If you are selling your property, an unconditional contract will provide certainty of the completion of the sale. Once you accept an unconditional offer from a buyer, you are also locked into any terms to complete the sale of the property. Unconditional contracts should always be discussed with a real estate agent and a lawyer.
- Stay In Control
Selling your property involves a lot of people, time, and money. It is easy to feel like you are losing control of your property, which is why selling a house is known to be an incredibly stressful event. Selling at auction is one of the ways the vendor can remain in control of the sale. Once a bid is placed, the buyer can not pull out of the sale without penalty.