Auctions create a competitive bidding environment and have the ability to establish an emotional connection between the property and the purchaser in a short period of time.
This may increase a home’s value, and help achieve a premium result.
Having a set end date
Having a set date creates the urgency for a prospective purchaser to be organised for auction day. If a buyer inspects the property seven days prior to auction day then they have seven days to be ready to perform and make a bid.
Setting a date also creates a structured selling plan in which to achieve a sale either prior to auction, at auction or post auction.
It gives the vendor and agency clarity on their roles in the selling process and also ensures they are prepared for all open for inspections and the auction.
Attracting more potential buyers
Taking a home to auction can help you attract more buyers through the open for inspections and more bidders registering at the auction.
Interested buyers may stretch themselves under a competitive environment to buy their dream home.
Get the most from your marketing
When selling your home there will always be an investment in marketing.
A high impact marketing campaign, usually condensed between 21 – 28 days, gives you the opportunity to attract the maximum amount of purchasers in a minimum amount of time.
It also gives buyers more of a chance to see the advertisement, recognize it, and develop an immediate emotional connection between the property and themselves as a buyer.
You never get a second chance to make a first impression.
Reduce days on market
Auction ultimately reduces days on market.
It creates a competitive environment where bidders can compete for your home and as a seller there is no doubt that this is the best way to sell your property.
Auction gives you an immediate unconditional contract.
Once the hammer falls a buyer is bound to the contract and an immediate exchange then takes place.
It gives you as the seller clarity in regards to the sale. Auction is the most transparent way to sell real estate.
Buyers can see who they’re competing with and sellers can see first hand what the market is prepared to pay for their home.
When selling your property, there are quite a few different modes of sale you can opt for. When it comes to the choice of selling your home through the auction process, the choice will be largely dependent on the type of property you have.
Higher end and luxury properties are often sold through auction due to the nature of New Zealand auctions focusing on the quality of the property, with price being the secondary concern. In this environment, keen bidders can drive the price of the property above market expectations in some cases, with no pressure to sell if the property fetches a lower than expected bid.
Another benefit to selling at auction, is that you will attract genuinely interested buyers. In New Zealand, those bidding at auction must do their due diligence before bidding. This means the contract of sale is not subject to inspections or finance – as these must be organised before auction day and ensures only serious buyers will show up to bid. Once you’ve decided on auction for your property, how can you ensure you’re best prepared for the day? To help you, we’ve gathered a list of considerations and frequently asked questions from Harcourts top auctioneers.