Should I auction my home

from Make the Move - Seymour. Spring 2022

Regional markets holding-up

To auction or

NOT TO AUCTION

Setting a time limit on the sale of your home is a tactic to create urgency from prospective buyers. This energy leads to competition, which ensures you’re achieving the best possible result for your sale. But if interest in your property is low then the auction might not ‘take off ’.

Advantages of auction

• If more than one person wants to buy your property, the competitive conditions of an auction and the fear of missing out can drive the price above your reserve. • It’s harder for buyers to put an accurate price on the home when they’re not aware of the vendor’s price expectations, which can have a positive eff ect on the sale price. • The seller controls the terms of sale such as the size of the deposit and time of settlement. • The vendor is protected by the reserve price, which they set with their agent based on feedback from home opens. • The seller gets to determine the amount of marketing they wish to spend on their campaign. • You haven’t failed if the property doesn’t sell at auction because your agent will be in direct contact with buyers post-auction as well as any other buyers who couldn’t bid under auction conditions. • An auction property is usually advertised without a price to generate high levels of interest and to ensure buyers don’t reject your home on price alone. • A sale prior to auction can be achieved and a premium price attained because a buyer may not be able to bid under auction conditions, or they don’t want to. • An auction contract is deemed ’unconditional’, which means the sale is not subject to fi nance or other conditions.

Disadvantages of auction

longer see value in the home and move on to other properties in the market. • People are unpredictable and if bidding is slow or there are no bids, this can send the wrong signal to the market about the true value of the property. • Again, buyers are fi ckle and in an uncertain market they will hold off bidding because in their minds they believe the market is continuing to fall, so they’ll wait. • Some buyers don’t like the regulated nature of auctions, including formally registering to bid (diff erent states have diff erent rules). • Advertising campaigns and marketing budgets for auctions can be intense and sometimes cost more. Before considering auction as your preferred method of sale, talk to your agent about the pros and cons. You need to consider several factors such as the type of property you own, where the property is located, are you in a rising or falling market and what does this mean for your sale, are other homes being auctioned in your area, what is the timeframe in which you want to sell and what is your personal preference. If you’re sitting on the fence about auctioning, talk to your agent. We all make the best decisions when we have the best information available.