Lots to love about auctions

There is more than one reason for attending a property auction.

Buyers and sellers are doing their market research, checking out the crowds and what people are bidding, or just simply getting comfortable with the whole auction scene. Sellers still yet to list may be weighing up auctioneers and marketing agents. Buyers may be there to bid. Sellers may be hoping their property sells under the hammer.

Buyers and sellers use auctions to gauge the prices and value of properties.

Auctions are the business of real estate; yet, there is another side to auctions. They are also entertaining. A good auction has anticipation, excitement, action and hopefully, euphoria. It can be quite a social occasion, with friends and acquaintances talking about the property market.

It’s fair to say that most successful auctioneers have a sense of showmanship. Their personality shines; and with the fast-paced nature of auctions, they can think on their feet and be quick-witted.

Why take my property to auction?

• Marketing is very focused and gives a property high profile while attracting the broadest possible buyer audience. • The seller has market-derived feedback, is the decision-maker on price and has greater control over the selling process, in general. • A reserve price protects the seller. • A sense of urgency in an auction promotes buyer decision-making, and bidding brings genuine buyers.

Competitive bidding helps achieve maximum sale price. • There’s the certainty of unconditional sale.

Why bid at auction?

• In the professional’s hands, the auction process is the most transparent and fair negotiation process for buying property. • All research can be done prior to the event, including organising finance, so the buyer is purchaseready on the day. • An auction gives a deadline, buyers see their competition in action, which makes it easier to make decisions.

• The successful bidder owns the property; it is finite. The highest bidder has a chance if the property is passed in; and if the property doesn’t sell under the hammer, bidders are in a knowledgeable position to make an offer.

With their defined timeframe, auctions attract people who are serious about buying and selling. In an auction program, the potential buyers are genuinely looking at the property itself without the focus being on a price.

When an auctioneer announces: ‘The property is on the market…’, all is laid bare and one price will win the property.

At auction, buyers and sellers are together in a transparent and public negotiation process; and the buyerfocus means a property is likely to sell even if it is passed in.

There are a myriad of reasons why buying or selling at auction - for buyers and sellers alike - is beneficial; but in my personal experience as an experienced auctioneer, former auction agent and seller of three of my own homes using auction as the method, the most significant benefits would be the transparency, certainty and peace of mind for both parties.

Dene Tucker,

RE/MAX Auction Services