Different Ways to Sell Your House by Auction

An auction by nature creates urgency as there is a definitive time in which the buyer must act or they risk losing their opportunity to buy the property. Setting an auction date, groups all interested buyers together at the one time, creating a competitive environment and the greatest chance to achieve the highest possible price. The theory of an auction is that your home will sell at true market value at that particular time.

Unless the property is passed in and consequently becomes listed ‘for sale’, the seller knows exactly when a sale and settlement will occur. The benefit of this is being able to plan ahead with your next move.

During the marketing campaign, buyers are usually given a price guide which can vary throughout the campaign depending on the amount of interest in your property and feedback received from buyers. The great thing about auctioning your home is that there is no price limit only a minimum amount that you decide you are prepared to sell for, which is called the reserve price.

Setting the reserve should be an analytical decision based on buyer feedback obtained by your agent during the campaign as well as comparable sales in your area. By now you should have a good idea as to how many buyers are genuinely interested and how they feel about your home in relation to the price that has been quoted to them.

The marketing undertaken for an auction property needs to be more focused and can often cost you more. A date is set and you need to create strong buyer interest in a short amount time. Your agent will recommend using a multi-faceted approach, whereby you advertise across a number of different mediums each week until auction day.

Once the hammer falls, the property is sold and there is generally no cooling off period for the buyer or the seller. Buyers need to conduct building inspections and ensure their finance is approved prior to bidding at the auction. If the property fails to sell at auction, you can continue marketing the property with an asking price. It is likely that one of the buyers, often the highest bidder will come forward and negotiate a sale with the agent on your behalf. We buy houses in Hurst Tx

Seasonal Selling

When Really is the Best Time to Sell?

The debate around the best time of year to sell is just as likely to continue raging as spring is sure to follow winter.

Most people would agree that the warmer months are the best time for selling a house. Yet is that just an assumption? For one, plenty of places in Australia barely cool down enough for winter to really be considered winter, and even in the ones that do, there are still some excellent reasons why the chilly months don’t deserve their bad rep.

Summer

When the warm weather comes out, the belief goes that the buyers come out too. While this may be true, it’s certainly not the case when countless families, couples and singles head away on holiday over the festive season.

In December 2012 and January 2013 the Sydney Morning Herald reported the total number of auctions had dropped to just 1,110 and 217 respectively with a 61 per cent clearance rate. When numbers of auctions can often reach up to the 2,000 mark, these numbers pale in comparison.

Winter

The general reasoning behind winter traditionally being a bad time to sell is that some people won’t want to come out into the cold to traipse around half a dozen properties on a rainy and cold weekend. It’s a fair enough assumption, if not entirely accurate.

For one, if someone is planning on moving house, a bit of rain isn’t going to stop them. There’s also the fact that if vendors hold off from selling during these months, it might be more likely that there will be fewer residential properties on the market at the time – giving your home a better chance.

For example, an article from news.com.au highlighted the fact that early June 2013 saw the second largest auction week of the year in Queensland with 337 homes going under the hammer.

Spring

This is the month for daffodils, lambs and spring cleaning but it is also a time of positivity in the property market. Plenty of vendors see this season as a great time to sell up.

Earlier this year the Sydney Morning Herald reported that April and September shared the highest number of auctions in 2012 with over 2,200 each, but that September had the highest clearance rates of the year.

Autumn

Autumn, with its mild temperatures and only easter to disturb the regular swing of the property market, is as good a time as any to sell up.

In a recent release from RP Data, combined capital city auction rates for the first quarter of 2013 was running high at 63.3 per cent.