Why an auction strategy pays off for sellers
Selling your home at auction is a highly effective strategy in Australia’s competitive real estate market.
With auction numbers expected to continue to be over 2000 around the country each weekend during spring, early numbers indicate that buyers are ready to strike with clearance rates remaining over 70 per cent in Sydney and Melbourne.
At The Agency we have seen an increase of more than 20 per cent in the number of properties that have come to market nationally compared to the same time last year and we expect a similar rise for the remainder of the year.
High numbers of participants in auctions means that buyers are eager and there is the volume to meet the supply of homes coming to market.
With the right approach, an auction strategy provides an opportunity to generate excitement, encourage competitive bidding, and often secure a sale price above your expectations.
Here are some reasons an auction strategy helps sellers get the highest sale price for their home.
Creates a sense of urgency
The auction process sets a specific deadline for buyers, often a four-week campaign, creating a sense of urgency. With a definitive date in mind, potential buyers feel more compelled to act quickly, helping to drive interest and serious offers.
Competitive bidding environment
Auctions create an environment where multiple buyers can bid against each other. This competition can push the final sale price higher, especially in areas with high demand.
Transparency
In an auction, the sales process is open and transparent. Sellers can see exactly how much buyers are willing to pay, while buyers know what others are offering. This reduces the chances of negotiations breaking down post-auction and can lead to a quicker, stress-free sale.
No cooling-off period
Unlike private treaty sales, there’s no cooling-off period with auctions. Once the hammer falls, the sale is final, giving sellers the security of a guaranteed, immediate sale.
Control over sale terms
As the seller, you control the auction date, reserve price, and sale terms, including settlement periods. This allows you to tailor the process to your unique needs and timeline.
With a well-prepared auction campaign and an experienced real estate agent guiding you through the process, selling at auction can help you achieve the best result for your property. Get in touch with your local expert for an updated sales appraisal and experience The Agency difference today.