Which method would lead to a quick sale: a public auction or a private sale? Personally I don't believe that every property is an ideal candidate to sell via auction.
6 Signs That Your Home is Auction Material
1. Location: Are auctions heavily favoured in the suburb where your home is located? If yes, think twice before selling using any other method. Some suburbs strongly prefer auctions, particularly in the inner, Lakeside and beachside suburbs. So if a property is sold through a private sale buyers may have a negative approach regarding the sale process.
2. Price point: A public auction is not the best method if you are considering selling a multi-million-dollar property. Auction work well when they are two or more buyers who would bid. A high price point is not likely to lure an adequate number of potential buyers to complete a sale through auction.
A private sale or expressions of interest instead of an auction is normally the way to go for high-end properties. This is because the pool of buyers is smaller and often buyers dislike being known.
Similarly, properties with a price range below $300,000 may benefit more from a private sale, as majority of the buyers are less experienced and feel uncomfortable in an auction format.
3. Presentation: The best way to sell a property that is presented poorly is through auction. Assuming it is in a good location, properties that need of a lot of repairs normally draws in strong bidding from buyers at auction because most bidders are either handy investors or owner-occupants who wish to reside in a good neighbourhood.
4. The cute “period” factor: Homes in good condition and featuring period elements are likely to lure in owner occupants and auction is the best way to go as buyers get competitive for features such as high ceilings, ornate cornices, fireplaces and art deco details.
5. Rare properties: A type of property that is one of a kind will likely be a hit at auction. Having uncommon features make a property hard to value because there is not many similar properties that have been sold to compare it with. The best way to reveal its market value is through public auction.
6. Difficult to sell: You may get fed up if you find your property languishing on the market for a long time. In this situation, you may finally achieve a sale through auction. Maybe you initially put your property for private sale, but factors such as location, type of property, incorrect pricing, limited or no marketing may have turned buyers off or simply not attracted them. An auction will neatly draw the sale process to a head.
Happy Selling, Annette Pinkerton
The Newcastle Real Estate Agent who enables you to turn the key to where you want to be.