Unlike the past when auctions were primarily used for special homes that were difficult to value or for mortgagee sales, auctions are now popular for all property types and in all price brackets.
This is probably in part because of the exposure auctions have had on reality TV shows, but also because the market is now more sophisticated - both sellers and buyers better understand the benefits of auctions, and certainly within Harcourts we have increased the focus on auction and auctioneer training.
With auctions there are benefits for both buyers and sellers.
A key benefit for vendors is that auctions are on a cash and unconditional basis and are preceded by profile marketing campaigns that flush out more buyers, so owners can rest assured that when they sell it will be to the top bidder, not just the first buyer as often happens with traditional methods.
An auction date also adds urgency and offers an impetus for potential buyers to act. Bidders must have done their homework and organised their finances before they can bid – so there’s a deadline to work to. Plus the competitive nature of auctions can spur them on further on the day.
Auctions are also advantageous for buyers. Buyers can be certain they are dealing with motivated sellers, reflected by their willingness to invest in good auction marketing campaigns in order to get a result. Further, anecdotal evidence suggests many of the best properties are taken to auction, so the choice of properties is good.
In addition, at an auction buyers can compete on an equal footing with others and everything is out on the open. They can track their competitors’ bids and control theirs – and if their bid is accepted it’s a done deal in a very timely and straightforward fashion.
Tip: Let your Harcourts sales consultant know if you are seriously interested in a particular property that is up for auction so that if another buyer submits a pre-auction offer you will be contacted and given the opportunity to do so as well.