Why sell your house at auction?
Placing anything in the market is almost always a challenge because you want to make as much money out of it as possible, but the situation is usually complex and you have to consider many factors in order to make the best choices. Also, something very important to take on account is what is your particular goal when selling your property. Is time a crucial factor or can you wait for the best deal to come up? Do you want to get the best price possible or would you rather resign a couple thousands in order to get a faster and/or smoother sale?
You need to keep your priorities straight and have them figured out before you make any decision. Once you have made up your mind, you can start considering whether or not auctioning your property is the best step you can take. Just as any other method, it has advantages and disadvantages, and you have to weight them against each other while always keeping your needs and interests in mind.
Auction are quick sales that can save you weeks or months with your property on hold, waiting for the right buyer to step in. If time is an important factor in your case, then you should consider setting it up for auction.
Make the right decisions
When you set your house for auction, you loose some control over the sale process. You don’t get to choose who purchases it and the process is conducted by the auctioneer. However, there are some decisions that you can make in order to maximise your chances of getting the best price for your home. And that starts from before picking the phone up to contact an agent.
You will always get a better price for your property if it looks good and tempting for buyers, regardless of the method you use for selling it. Clean it up and set it up for visits from potential buyers some weeks prior to the auction. Make it look better by fixing details like the frontyard - place some flowers, decorate a little bit, that kind of things - and improving the overall look of your property. Buying and selling at property auctions isn’t much different as selling through an agent when it comes to staging, so if you have worked with an estate agent before and you’ve gotten some advice, you can use that for auctions too.
There isn’t much difference when it comes to the auctioneer’s fee, which is usually around 2.5% of final selling price. So there’s not much of a point in shopping around. What you do have to consider is that bigger auction houses are more likely to market your property correctly and to the right people, thus increasing your chances of getting nice final figures. You could even consider the auctioneer, because some of them are experts in engaging people and manipulating them into pushing the price up high, even putting up some theatrical show with good results.
Resources and tips
There is a lot of information to search around in the Internet about how to set your house for auction and how to choose the best auctioneer. However, you have to take on account that most of these articles are hosted by companies or businesses that have something to do with estate trade, so they will always have an agenda. Auction houses will highlight the possitive aspects about auctioning your house, while other sorts of businesses like estate agencies and quick sale companies will advise you to take a different route. We invite you to use this article as a starting point and then open up your search for information and tips, as long as you read pages that have no agenda. In other words, avoid content published by estate companies of any kind.
One great place for reading about estate auctions is the HomeOwners Alliance’s website. This is an absolutely impartial site with plenty of useful information about this matter - as well as many other related issues. Articles in this site are written with a very clear voice and they are easy to understand.
If you want a quick resolution for your property sale and a reasonable price, a well performed auction will be the best for you. Purchasers are willing to bid for houses and sometimes the whole event can become kind of a show, like with those former properties of celebrities up for auction that sometimes make it to the newspapers. Good auctioneers know how to engage the public and get them into the adrenalin rush, so in some cases an auction price can be higher than your property’s market value.