Columnist Yolande King from EVES Real Estate loves the transparency of auctions.
PHOTO TRACIE HEASMAN
Auctions might look daunting to both buyers and vendors. But, having witnessed thousands of house sales, in all market conditions, I’m a big advocate of this tried-and- tested method of selling. The main reason? Transparency, on both sides of the contract.
I would much rather bid at auction than in a blind multi-offer where I need to go straight to my upper limit. You could be tens of thousands over or under the other buyer, but never know, because the offers are confidential. The auction process is transparent, so you know exactly what other buyers are willing to pay.
NOT JUST A ONE DAY WONDER
Auctions are often judged by the results on the big day, but they are actually a three phase process.
Phase one: We attract interest with a customised marketing campaign and give detailed feedback to the vendor. Addressing any potential issues beforehand and ensuring the buyers are 100% prepared, is crucial to a successful campaign.
Phase two: The auction day – where all interested cash parties compete to buy the property. Very exciting – but only if phase one was done with diligence!
Phase three: If the property didn’t sell under the hammer, the conditional purchasers present their o ers following the auction. The vendors are able to set an asking price using the market feedback gained from phase one, and the buyers can be con dent that everyone is on the same page.
THE TRUE PRICE
When listing the property, the agent will have given the vendor a likely selling range, based on sales and other comparative data. So the agent will be able to give buyers a price guide too.
And market feedback throughout the campaign provides the vendor with valuable information to assist them in setting their reserve.
In the spring issue, I gave you detailed advice on getting your property ready for sale. One of these steps involves sorting out the sale and purchase agreement, and gathering all the different reports (LIM, building, meth tests, and so on). With auctions, this is a priority (and part of phase one). You will attract more interest by addressing the issues these reports uncover right from the start. It’s the unknowns, not the issues themselves, that often put buyers off.
As vendors, auctions give you control as you set the conditions of sale. For buyers, remember that this is not set in stone; you may be able to negotiate these terms. Just ask!
EVES auctions are free, and place vendors and buyers in the hands of a huge team of experts. Properties are marketed not only to buyers, but also a significant number of the Bay’s salespeople. We make sure that vendors are fully prepared, and we train our buyers for the big day too, training them in the language used and bidding strategies. And, if you’re worried nerves may hijack you on the day, we are able to bid on your behalf. The right agent will make sure you feel confident in the process.