The Courier

The power of taking your property to auction

The power of taking your property to auction
The power of taking your property to auction

This is sponsored content for Buxton Real Estate.

So you've decided to sell your home? Choosing the right method of sale is one of the important decisions to make. Will you take it to auction or go with a private sale?

In the current buoyant market, auctions are a popular choice because of the many benefits they can deliver, according to long-time Ballarat real estate agent Peter Burley, a director at Buxton Real Estate.

"From a vendor's perspective it's really a wonderful method of sale because it does give so much more control, and can help maximise the sales price," Mr Burley said.

A set end date

When a property goes up for auction there is generally a short marketing campaign with a set date for when the property will go under the hammer.

"For an auction we would generally run a marketing campaign of about four or five weeks, whereas with a private sale you just don't know," Mr Burley said. "It could sell in a day, a month or it could take a year.

"Auctions give the property owner more structure; they know when settlement date is, they can make plans, and you can run a very targeted, impactful campaign.

"The reduced days on market creates a greater sense of urgency for buyers; if they love the home they will want to get everything organised quickly and be at the auction ready to battle for it."

Generates competition

There's nothing like an auction to get the heart pumping. The competitive bidding among potential buyers means the sale price when the auctioneer calls "sold" is often more than expected.

"When you're in a rising market like we are in now an auction is a way to achieve the highest possible price - you're not putting a ceiling on your property's value," said Mr Burley.

Selling a property by auction gives more control to the vendor and can help maximise the sales price.
Selling a property by auction gives more control to the vendor and can help maximise the sales price.

"When buyers are in that auction situation you do find you might get an extra 20, 30 or even 40,000 just in the space of two or three bids. Bang, bang and you're there.

"The vendor sets the reserve price and the auctioneer can't sell it under that level so vendors are protected, but you certainly usually see expectations exceeded.

"In a private sale there's generally a fixed price, or quoting range, and it's rare to exceed the price range."

Unconditional contract

The set terms of an auction process are a benefit too, giving clarity and certainty around the sales process. At the fall of the hammer the buyer must meet the terms.

"It's unconditional," said Mr Burley. "It's a cash contract, the settlement terms are set, there has to be a ten per cent deposit paid.

"And there's no cooling off period, unlike a private sale where there's a three day cooling off period. The buyer has to come to the auction with everything ready."

While going to auction can deliver big benefits, Mr Burley urged property owners to ensure the agent they engage to sell their home is experienced with the process.

"Not every property is suited to the auction process," he said. "Your agent needs a comprehensive understanding of the process so they can advise you correctly and get the best result for you so make sure you find out about their experience."

This is sponsored content for Buxton Real Estate.