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The greatest advantage touted by real estate consultants is that the auction is an unconditional sale within a predetermined timeframe. This is not 100% true because buyers can still requisition the title unless this option has been removed from the Particulars of Sale.
The auction process allows for a timeframe for potential buyers to view the property and have checks made on it. The advertised procedure must be strictly adhered to. If advertised as ‘no offers before auction’ you should not accept offers before auction, as this breaches the Fair Trading Act and you will be liable for damages.
Is it stressful? Of course it is …any sale is stressful. This is one aspect you need to discuss with your agent/consultant. ‘Sellers conditioning’ is a term used by real estate consultants for putting pressure on you to sell – make sure you agent/consultant is on your side.
Are you in control? Yes – it is still your choice if you want to sell or not.
Does an auction deliver the best possible price? That’s debateable. Some people are dead set against auctions and they will tell you that the price you are getting at auction is determined by the under bidder and therefore it can’t be the best possible price. Other people especially sales people, will tell you, you can’t do better. When it comes to the cost, advertising is usually your responsibility. I have seen auctions that have delivered outstanding, mediocre and no results at all. I have seen lots of buyers at an auction that responded to average advertising and no buyers responding to outstanding advertising. I have seen buyers eager to buy, aggressively making bids and buyers just standing there without ever making a bid but jumping in to negotiate once the property has been passed in. I have also seen auctions rooms full of real estate agents and onlookers and one after the other property being "passed in".
We all love statistics. Ask agents who are promoting auctions to give you the real true statistics on the success of auctions. I know some companies would say a sale, even three months after the auction is an auction success story. You should ask for statistics on how many properties has been passed in and how long after the auction date the properties mentioned in the statistics has been sold.
As always, the only question to be asked it what is best for you in your circumstances. We would love to discuss your options with you.
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