Selling by Auction: What You Need To Know
Selling by Auction: What you need to know
Selling and buying a property in an auction can be stressful for both, the buyer and the seller. However, auctions still have a lot of promises to offer which make them intriguing and fascinating for both the parties. The chance of earning a profit way above the sale price can encourage the sellers to participate in the auctions at the cost of sacrificing their property as it may no longer be theirs. The opportunity to get their dream property may motivate the buyers to go at extreme lengths in the bidding wars to obtain what they desire.
So let’s look at what has made auctions a regular “culture” amongst the people in the Inner West side of Sydney and how auctions may be advantageous for you.
The ideal markets for auction sales
Choosing the best market can be tricky if you do not have enough knowledge of the market trends and what’s in demand. Generally, auction sales are good for those markets that have a good buyer activity (determined by auction attendance and inspection numbers), low supply of property (the more competitive it becomes, the more motivated the buyers will become to keep bidding) and a desirable location (make sure the property is located at a good spot, near the required area and at the right address).
Can a ‘for sale’ sign discourage the buyers?
For some, a ‘for sale’ sign in the Inner West of Sydney may just be another sign for a failed auction. How so? Well, this part of Sydney contains all the required ideal markets. So, buyers usually misinterpret private sales when they see a ‘for sale’ sign. This further leads to the creation of offers which are way below the asking price and may devalue the property even if it is exceptionally good. However, we used the word “usually” above because this does not happen every time. Some private sales are excessively successful and quicker to bring results so, this is just a factor worth keeping in mind before deciding whether going to an auction would be the right choice or not.
Is an auction better or a private sale?
An auction or a private sale, both of these come with their own advantages and it is up to the seller to select the right choice according to his/her preferences. The best part about an auction is undoubtedly the transparency of everything. Unlike a private sale, the real estate agent will not be making any kind of negotiations behind the curtains but instead everything will be heard by everyone; the bids, the negotiations, the terms of the sale etc. In addition, the auction also provides the seller a greater control over the overall process because not only do they have the ability to negotiate with the buyer before the bidding starts but they can also make negotiations regarding pre-auction sales.