M MADDISONS Real Estate Mosman AUCTION INFORMATION Mosman Real Estate Agents
Suite 1 Level 2 66 Spit Road, Mosman 9960 3444 www.maddisons.com.au
Understanding The Risk Of A Property AUCTION
Auctions generally require the owners to pay all advertising and marketing costs. This is generally 1% of the property value (e.g. If you sell a home for $1million, it could potentially cost the owner $10,000 in advertising fees). The major risk to sellers is that the advertising costs are paid whether a property sells or not. In addition to advertising costs, obviously there are the agents’ fees if the property sells.
When properties are taken to auction, if the property doesn’t sell on the auction day, as a seller, you will more than likely be asked for more money to continue to advertise the property.
MADDISONS Real Estate 57 Harbour Street, Mosman 9960 3444 www.maddisons.com.au
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Auctions require an intense advertising campaign. This exposes the property to thousands of non-buyers. You stand to lose substantially if the property doesn’t sell. If your property takes on the title of a “lemon” the price will be affected severely.
Auctions CAN undersell. Buyers don’t pay their maximum price in most cases - they pay the most they have to pay – a little more than the under bidder.
There are many tricks involved with Auctions. Make sure you research and have a good understanding of the process.
Watch out for agents who set out to trick you with lies and false promises
Auctions can mislead the seller and the buyer. You may find that the seller will be told that they will achieve a high price if they go to auction, and then the buyer is told that they will grab a bargain. It happens every day of the week. Which one do you believe?
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Auctions involve high pressure tactics, especially in “auction rooms”. Make sure if you are a seller in these conditions, that you stand firm on your reserve price. You don’t want a whole room of people staring at you while an agent tries to convince you to accept a price that everyone knows you don’t want to accept.
Buyers prefer not to buy at auction. Sellers prefer not to sell at auction.
If an agent wants to charge you money to advertise your home, they obviously aren’t confident that they already have buyers on their books. This is obvious as they aren’t prepared to invest their own money in advertising your home.
HOW CAN WE HELP? MADDISONS Real Estate can show you how to safely achieve the highest price for your property and save you money in the process. MADDISONS Real Estate is the only real estate office in the area to offer every client FREE ADVERTISING, FREE MARKETING, and FREE SIGNAGE. Together with a genuine service guarantee. When you choose MADDISONS Real Estate to sell your property, you have the peace of mind knowing you can cancel the agreement at any time up until we find a buyer that is interested in buying your property. Unlike other agents who will lock you into expensive long term binding contracts, with MADDISONS Real Estate, you’re always in control. We have a fantastic track record of sales and satisfied clients; therefore you can be confident when allowing MADDISONS to assist you. Follow us on
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MADDISONS Real Estate 57 Harbour Street, Mosman 9960 3444 www.maddisons.com.au
admin@maddisons.com.au