Why Sell Before Auction?
A new property comes onto the market place in your neighborhood, the signboard goes up with the words” Auction” , “on-site Auction “ or “in rooms”, it may even have the words in the advertising material heading as “if not sold prior”
So, why does a property sell prior to the auction day? The reasons are complex and each and every sale of a property has numerous reasons for selling , such as : death, divorce, relationship breakdowns, financial problems, too big , too small, downsizing, up-sizing, work related transfers or capitalization, difficult neighbors, sea-change, tree-change or mountain-change, interstate moves, and overseas moves. I think that covers most selling reasons. The reasons for selling form and in part, are the reason for selling prior to auction.
However there is another level of reasons that properties sell before auction. If could be a great price too good to refuse ( but this is takes a skillful agent to judge), the lack of buyers ( you will never know this, only the agent and the vendors), not enough buying interest, or buyers not wanting to wait until the auction day and submit offers beforehand, vendors instructions or perhaps something as understanding when is the best time to sell. For example, we recently sold a property in Coogee prior to auction, as my owner was grand dame of 90, elderly yes, frail no, and her family decide to sell prior to auction day to deflect any worries she may have. In the end it was about honoring our clients wishes.
To sell before auction is strategy that we at Kathryn Hall Real Estate take very seriously and the goal is to be fair to all. How an agent handles this delicate process, and it is a delicate process, is vital to ensure that each and every interested buyer has the opportunity to be part of the opportunity to submit an offer while keeping our prime goal to achieve the best price possible for our client the owner.
If we are acting as buyers agent in an auction, then the strategy is different, as then our goal is to secure the property for our client. But let’s get back to being a “selling agent” and why properties are sold prior to auction.
The main goal is to sell the property. The auction bidding process creates a “public arena “ in which at the time of the auction the buyers can see their competition and have the opportunity to bid for the property. How high they go in price is their decision and often buyers will surprise themselves, as the auction bidding is a relatively quick way to be educated as to what others may be prepared to pay and it is public. The Auction process provides transparency. In New South Wales there are strict rues of conduct that all Real Estate Agents and Auctioneers must follow.
The auction process has three tiers, to sell before the auction, to sell on the day of the auction and to sell after auction. All three tiers have their own reasons for selling before, during or after.
To sell prior can be manipulated by the buyers they may wish to secure the property, or may be fearful of losing the property hence they then place in an offer, the upside to this buying strategy is that the buyer is demonstrating decisiveness and that can be respected by the Real Estate Agent and the owners, the end outcome is s secure sale.
It is vital that the Agent and the Auctioneer consider carefully to sell prior to an auction and communication to both sides of the sale process such as the buyers and the owners.
Remember an “Auction” is one method of announcing to the public that the property is for sale, and as often you may hear the question “is the property on the market?”. It certainly is on the market all the way up to, during and after public auction.
If you are needing any help with an auction sale, or thinking of selling via the auction process or you are needing help as a buyer for an auction, we at Kathryn Hall Agency, welcome your inquiry, call or email or sms us.
It may be the best advice and assistance you get prior to buying or selling at auction