Selling your property is a big decision for many people, and the reasons can vary from seller to seller. One thing, however, is that every seller wants the fastest sale and the best deal. Auctions are some of the fastest growing ways to get homes sold both quickly and at the best price available.
To some, however, auctions can seem too confusing to try. Many new sellers have the impression that auctions will get you less money. This is actually quite the opposite, and here’s why.
More exposure to buyers
One of the hardest things about selling a home is getting interested buyers to come and take a look. This usually requires a lot of advertising, a lot of open home days, and a lot of qualifying. By using an auction system, you bring together many qualified buyers who may be interested in your property. Typically, these are people that have already prequalified and are looking for a property just like yours.
Competitive bidding is the best
It’s one thing to set a price for your property and hope that you can find some people who are interested enough to agree to your asking price. It’s another thing to have several people that are interested in your property each trying to outbid the other. In many cases, sellers have been able to get more than their asking price. For the buyers this may seem like a disadvantage. But one thing to keep in mind is that these buyers aren’t attending their first auction. Typically, they’ve attended many of these auctions already, and are looking for yet another property to improve, rent, sell.
If you’ve ever heard of the term impulse buying, then you understand how having to make a fast decision can improve the seller’s chances of selling their property. Auctions require people to make very similar choices. Depending on the number of bidders, you can see past decisions being made that can actually generate a higher sale price for your property.
Just as importantly, you’re able to work with an auction agent that helps you understand more details about the asking price of your property, potentially allowing you to adjust your asking price for a faster and more reliable sale. This will enable sellers to plan better after the auction.
Improving your odds
Having an auction day also gives you time to prepare. Typically, sellers undertake intensive marketing campaigns that work to maximize your exposure as little as 21 to 28 days. Marketing campaigns like this are meant to attract buyers who may feel more connected with your property, and thus may be more eager to bid. At the auction there is nothing stopping you from selling your home to a nice young couple, but having several nice young couples at all want your property can’t hurt either.
Keeping it fresh
As property sits on the market unsold, they give off an impression that something must be wrong. Perhaps the price is too high? Perhaps there are expensive flaws or damage that needs to be fixed. Whatever the case may be, the longer a house sits on the market, the less buyers you’re going to attract, and you may find yourself lowering your asking price more than once.
Conversely, auctions give the impression of getting sweet deals. People attending these auctions feel as though they are catching a great deal fresh on the market. This can also help speed up the process because potential buyers are more likely to pre-qualified before the auction.
Fast and final
One of the greatest advantages to an auction is that there is no cooling off period. On that gavel falls, that sale is final. Up until that moment, buyers can see who they’re competing with and sellers get to see the market in action in real time.
Though circumstances may vary where some ways of selling will get you more money, and some ways of selling will sell your home faster for less. Auctions, however, have been a consistent compromise for several decades. It acts as an equalizer for both the buyer and the seller to ensure that property is being sold at a real market rate to qualified buyers who are genuinely interested in your property. For many sellers, contacting an auction agent is a first step in reducing stress and time it takes to get there property sold.