The very best means of achieving a premium or fair market value for a property within a specified time is auction. The deadline for the sale creates a sense of urgency among buyers and sales consultants alike.
Auction involves a short, sharp and intensive marketing campaign of a property without a price. This is to test the market to see what buyers, in a competitive situation, are prepared to pay to become the new owners of that property.
Real estate marketing programmes look for one buyer for the advertised property. Auction campaigns look for several buyers.
Harcourts objective is for the seller to have the highest price possible offered for their property by the end of the auction program.
3 Opportunities to Sell
The pre-auction period is when three to four weeks are spent sourcing buyers to qualify and prepare to bid at the auction.
The day of the auction. The auctioneer and consultant will establish the opening bid level- crucial to creating active bidding.
If the property is passed in, the auctioneer will approach the highest bidder to offer them first option to accept the seller’s reserve.
Post-auction period. Should the bidding not meet the seller’s reserve the auctioneer will pass the property in at a level agreed upon that maintains its value plus its saleability. Stage three provides opportunity to negotiate with those who may need to sell another property or arrange finance before they commit themselves unconditionally. .