Buying or Selling Property at Auction
The thought of buying or selling a property at auction may well seem intimidating if it’s something you’ve never done before.
TV images of an auctioneer waving a hammer around and calling out excitedly, taking bids from people you didn’t even see move don’t necessarily make it look easy. But as with many things in life, it’s likely you have a fear of the unknown, rather than a specific fear of the auction process.
Ray White CEO of Growth Mark McLeod says auction sceptical vendors often cite the pressure of auction day or a fear of not getting the best price as reasons to avoid selling via auction.
Auction-averse buyers may be intimidated by the process, fearing the bidding will be too fast or that they may pay too much. But Mark says the real key to a successful auction outcome whether you’re a buyer or a seller is to understand the process.
When it comes to price, the whole premise behind the auction mode of selling is to find the current market’s best price in the most transparent way.
It’s a common fallacy that the real estate agent’s job in auctioning a property is to sell it for a particular price. In reality, the real role of an agent is to market the auction property in such a way that all active buyers in the marketplace are made aware of the sale and come prepared to bid to their highest limit on auction day.
The basic economic principle of supply and demand will then decide the outcome.