Thursday, May 23, 2013

Going, Going, Gone…! Should I buy or sell at auction?

With the School Auction Idol and The Golden Gavel finals being held last week, auctions are very topical at the moment.

To auction or not to auction is often a big decision for the vendor to make… particularly at such an early stage of the campaign. Before deciding how to sell your home, it’s important to know the facts, the benefits and ask what your options are.

It’s well known that auctions are popular across the eastern seaboard. In Brisbane, 95% of the high end properties go to auction, a trend which is also seen across Melbourne and Sydney. Historically, Adelaide consumers are more hesitant to adopt auction as a sale strategy. So let’s see how the Adelaide results stack up…

According to RPData, the mid-May auction clearance rate for Adelaide is 62.5%. This is a close third behind Sydney, who recorded 67.7% and Melbourne at 71.3%. Adelaide’s auction clearance rate is much higher than what we have seen in the past - RPData notes the last time auctions appeared so healthy was June 2010. It seems consumers are starting to see the benefit of a high energy campaign to get their sale across the line… and the results are showing just that.

So what are the benefits?

For the vendor, the main attraction is that the sale is unconditional, with no cooling off period. In addition to this, the vendors are able to set their own course and have more control over the process. With a highly intense, focused marketing campaign, you achieve maximum exposure in the market place and have a clear goal - the auction day. Auctions also entice serious buyers who are ready to move quickly. They create an energetic and competitive environment leading up to auction day. The “buzz” and excitement on the day is unmatched in the private treaty sale. Nothing beats the moment when the hammer falls!

For purchasers, there are key benefits for those who want to get the deal done. Quite simply, you can buy your dream home there and then! In addition to this, the process is very clear and transparent... you can see your competition! This is raw information of current market conditions and is invaluable. If you are the highest bidder, you also have the sole opportunity to negotiate post auction, should the property not sell.

Auctions are a big part of Toop&Toop’s DNA. They are energetic, intensive campaigns and our team are specialists in stepping you through the process. Should the property not sell, you have invaluable feedback on the market and can effectively transition into a private treaty sale. When deciding whether to auction your home, you should consider the benefits, who you are targeting and know that the stats are in your favour. If you are looking to buy at auction, come prepared to make sure you don’t miss out… Happy bidding!

Suzannah Toop

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