Auctions became a popular method of sale in Canberra approximately 10 years ago. Buyer confidence has seen this become the predominate sale method for homes in Canberra today yet we come across so many buyers who bypass an auction due to a lack of understanding and an uneasiness about the process. It’s important to remember that an auction is not just about the auction day. It’s a three stage process with plenty of opportunities to sell or buy along the way. Here are the benefits for a seller and a buyer.

SELLERS:

  • Three stage selling process –Opportunities to sell before, at or after the auction
  • Incorporates all three methods of sale
  • Removes the biggest objection buyers have – the price
  • Removes the possibility of either underpricing or over-pricing your house
  • Competitive buyer interest may result in a price which exceeds expectations
  • On auction day, negotiations can only move upwards
  • Sets a deadline for action which can create urgency
  • Targets “cashâ€? buyers who are ready to commit NOW!
  • Selling before or at the auction gives means an unconditional exchange of contract with no cooling off period

BUYERS:

  • transparency – ensures you only pay what you need to
  • A forced sale may mean a bargain is yours for the taking
  • Unconditional exchange at the fall of the hammer means no gazumping
  • A lack of confidence in the process form other buyers may mean less competition for the property
  • Long back and forth negotiations are eliminated
  • if passed in to you, you have first right of refusal
  • You can slow the process by making short bids
  • Confidence that the sellers are not just testing the market
  • With defined timeframes, an auction reduces the time it takes to buy a property
  • No hidden surprises. The terms and conditions are set out before you agree on a price

Penny Hyde is a buyer’s agent with a wealth of experience and awards in the local and national real estate industry. Auction day representation is one of Penny’s specialities so if buying at auction still sounds like something you would like to avoid, let Penny do the bidding for you. Visit http://www.pennyhyde.com.au to learn more.

About The Author

Penny Hyde

Penny is a multi-award winning real estate agent who has over 10 years of experience in Canberra Real Estate. The Penny Hyde Agency works exclusively with time poor, or inexperienced property buyers to help them take the journey from open home, to owner.

Leave a Reply