The advantages to an auction are numerous. An auction is designed to attract genuinely interested, cash-in-hand buyers. Those buyers are focused only on establishing the maximum price they are prepared to pay, not how low their offer should be. You set the terms, conditions and deadline. You agree on an undisclosed minimum reserve price. There’s also the very real possibility of acquiring a higher price, especially if keen buyer interest promotes competition. There is even the opportunity to accept offers prior to auction day. Auction marketing motivates genuine buyers to act. It’s also the least disruptive and intrusive method to sell you property. Most marketing is carried out over a short time (on average less than 35 days).
The property is marketed at a price that is acceptable to the seller. If priced at fair market value good interest will be shown in the property and it may make it easier for potential buyers to determine whether the property is within their reach. It is usual for the buyers to begin negotiating below the listed price.
Setting a realistic asking price is crucial and will be determined by you in conjunction with your sales consultant, having taken into account some or all of the following:
* Comparable sales in your local area
* Current competition
* Current market conditions
* Special features of the property
* Your circumstances
No price is a method of listing exclusively where the number of buyers is increased because your maximum price is not stated. In a changing market this type of marketing maybe employed for 1 – 2 weeks to get buyer feedback so that you do not over price your property and lose valuable time on the market and possibly miss the buyer who is waiting. No price can also be a strategy to test the market before going to auction.
This method of marketing creates a high profile for your property and establishes a competitive environment without having to list a price. You also set the terms, conditions and deadline. Prospective buyers become emotionally involved before they consider price and have only one opportunity to put forward their most competitive bid. You have the opportunity to accept, decline or continue negotiations with any interested party. It’s your choice. You’re in control. Increased enquiries and inspections are often generated by this sales strategy. All tender details remain undisclosed and absolutely confidential.