Top Benefits of Selling by Auction

With the spring selling season underway, potential vendors may be wondering how to best go about selling their property. Auctions are a common way to sell your property, particularly in Victoria and NSW. There are a number of benefits of choosing to sell your property via an auction.

Generating Competition

Want to sell your property for more than it might be worth? The best way to do that is to have multiple bidders competing to buy it. When you have multiple interested parties, there is a chance that hte sales price will keep getting pushed higher as the bidding continues – something that’s much less likely to occur when you’re selling by private treaty with only one interested party.

One of the key advantages of taking your property to auction is that it naturally generates a certain level of competition between potential buyers. Because the buyers are forced to compete for the property on auction day, this often leads to a great result for the vendor – especially if your property is in a desirable location.

An Unconditional Sale is Favourable

During a private sale, you are negotiating with a buyer on both the sale price and the terms of the sale. Conversely, when a property is sold via auction, the terms of the sale are generally laid out in advance, including the settlement period. When that hammer falls, the sale is typically unconditional, meaning that there are no sunset clauses or opportunities for the buyer to back out. This puts the seller in the driver’s seat and means they can lay out how they want the sales process to unfold.

Heightened Emotional Element

When the potential buyer of your property is an owner-occupier, the auction process can heighten the emotional element of the purchase. The emotional attachment that is formed can lead to a higher sale price for the property on auction day. As buying a property isn’t something that many people do very often during the course of their lives, it can be quite daunting for potential buyers, especially when they have their hearts set on a particular property.

You’re More Likely to Have Quicker Sale

The auction process typically takes place over a number of weeks leading up to the auction day itself. Having this hard end date in place often leads to a faster sale. Because purchasers know the property is going to be sold, they need to be organised and act quickly if they want to be successful in buying the property. There is potential for private treaty sales to become drawn out with a lot of negotiation that can continue for months – particularly if there is only one interested buyer.

You Can Still Sell Prior to the Auction

Choosing to go through the auction process doesn’t preclude you from accepting an offer prior to auction day. If you have a keen buyer with a strong offer that you’re happy with, you are still able to accept it before the auction takes place. Knowing that the property is going to sell at auction can often motivate buyers to approach the vendor with attractive terms, in hopes of persuading the vendor to sell to them direct.