Is it a good thing to sell by Auction?
In the past, you had to have a special feature or a real plus that would cause buyers to join the price battle at auction with the price often exceeding your expectations.
However, today more and more home sellers are opting for auction , negotiation, tender or the deadline sale process, rather than putting a fixed price on a property. Having a special feature can certainly cause buyers to pay more than they normally would as that feature maybe important to their lifestyle and hard to come by in other properties they have viewed.
A 3 bedroom home on a sub divisible site would be sought after by Developers and for that reason the vendor has a special feature, a large section, quite hard to find in some parts of NZ today, especially if it is near to a main shopping centre where retirement units are always popular.
So, how many houses sell at Auction? Roughly half of current sales figures suggest the prices are starting to, dare I say, increase once more.
The old saying “a property is worth what a willing buyer is prepared to pay will always ring true.”
Advantages and disadvantages of selling at Auction.
The advantages are only there if the property sells and ill explain more further down, otherwise it’s all downhill as far as expectations and finances are concerned.
You have to pay for the advertising of an Auction which is by no means cheap, then you have to pay for the auctioneer, plus the fact you have to let the potential buyers know it did not sell at your reserve price, so now buyers are wondering what that reserve was among other questions. Not to mention of course, the stress you and your family have suffered keeping the property pristine for viewers for the weeks before the auction, and trepidation in case it does not sell, that worry that seems to be lodged in your brain continuously week after week. But take heart, just because it did not reach your reserve by no means is indicative of it never selling at that price. The right buyer just hasn’t come along
Now the Advantages which, I have to say are probably more abundant than disadvantages.
Firstly, by setting a reserve price you are saying “this is the price I would be satisfied with for my property.”
Secondly, it is a swift way to sell with buyers all coming together and hopefully creating a bidding war where very often emotions overtake common sense, Similar to the Trademe effect that often results in people bidding more than the buy now price as they get “auction fever”.
Thirdly it gives you the opportunity to go out and buy another property at as a Cash unconditional offer which gives you an strong advantage when it comes to negotiating the price of your next home.
Thirdly, there is no “I wonder” thoughts flying inside you head, which you get on a non- auction sale. None of the waiting time that goes with a buyer who has to raise finance or sell their house first. You don’t have to wait up to 6 weeks for this to happen only to find the buyer could not get finance or their house did not sell.
The choose is yours.
Selling at Auction eliminates all that, and if you have a home your Agent feels is perfect for Auction then this is a decision only you can make.
At the moment the sale rate by Auction throughout NZ for the weeks of September 2019 seem to be close to 50%. For more detailed information on auction sales click here
If you do decide to sell, before you make any decision as to the method you intend to use, contact TopNotch Agents NZ Ltd on 0800 355 655 to ensure the Agent you select has all the necessary skill and experience you need for the job.
We are not Real Estate Agents,We are Referral Agents ready to point you in the right direction of the best Agent you can use.