Is an auction the right way to sell your home?
AUCTION clearance rates have hit a two-year high in Australia’s largest housing market, but is it the best method to sell your home?
Those in favour of auctions say that selling a house under the hammer creates a sense of urgency, giving buyers a call to action, making it the quickest way to achieve the best possible price.
However, there will always be support for selling by way of private treaty with a set price.
There are several influencing factors and advantages to both, it’s more about determining which method will work best for your property type, what area it’s in and you, as a seller, what you are comfortable with.
Reasons why an auction is right for you:
1. When your home is in an area where auctions are the norm. In some suburbs, if you don’t hold an auction, you may risk the perception that there is an issue with your home that makes it unsuitable for sale that way.
2. When your property is of a kind that is in high demand. Your home may have unique or special qualities that buyers are prepared to compete for. It may be a particularly beautiful home or in a desirable location. An auction is ideal for taking advantage of the emotional appeal of the home making bidders drive the price higher.
3. When the property market in your area is booming. When prices are going up in your area, buyers are keen to buy even quite ordinary homes because they’re fearful of missing out and having to pay more next week. This anxiety encourages buyers to bid higher than others.
4. When you have to sell your home in a particular time frame. If you have bought another property for instance, or need to sell by a certain time, an auction is ideal. Unless the market is very slow, or you insist on an unreasonable price, even if your property passes in on the day, it usually sells within the next week or so, compared to a private treaty sale which can sit on the market for months.
5. If you find the whole marketing and open for inspection and sale process a chore. Auctions have a specific and intense marketing period, usually around four weeks. If you’re lucky, the stress culminates in 10 minutes or less on a specific day, and then it’s all over.