Selling by Auction – is that everything it’s cracked up to be? 

December 4, 2019

 Maybe…

If there’s legal reasons, or if the house is really difficult to appraise, or if  market values are moving up fast …we could recommend an auction as the best way of achieving HPP. (our in-office lingo for Highest Price Possible)

But our bias is towards a nicer way to say goodbye. And that’s the good ‘ol Private Treaty method, where we ask a starting price, and negotiate from there. That way, the seller keeps control of the negotiating process, rather than being feeling shattered  when the bids (if there are any) don’t make it to the reserve price.

But there’s an exception. IF there’s a  strong likelihood that there’s going to be competition between buyers, than an auction could be the best way to achieve HPP. You might have seen this in the realty TV programs (eg The Block, where there’s sometimes 3 or more live bidders are pushing each other up in price…but since when have realty programs been real?!)

So, in a capital city, with a few million viewers being exposed to the property on TV, then okay..auction is the way to go.

Here at the Sunny Coast, our anecdotal evidence is clear….most buyers are not comfortable bidding at auctions and hold back. That’s why we are cautious before recommending auctions to our clients.

 

Caloundra City Realty

Article by Caloundra City Realty

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