When you think of a property auction, do you think of a desperate seller and a low price being fetched? That’s they way auction used to be – but not anymore.
There is a new way of auctioning property that not only attracts a totally different buyer – but it can also help you achieve a price significantly higher than any other selling method.
Typically, the biggest problem with buying at auction is that, as a buyer, you had to have cash, or put your deposit at risk on the gamble that you will get your finance. That’s because you are usually only able to know for certain that you will get your finance once you have a contract in place. Risky – unless you have the cash.
In an ever-changing market two of the leading home loan providers are pioneering a new way to provide registered buyers for Harcourts Platinum auctions with a fully pre-approved bond prior to the auction. That means the buyer is at no risk, knowing they have their finance fully approved and in place before they bid at auction.
This has a significant impact on the number of qualified buyers that can now bid at auction. It’s not just the cash-flush bargain hunters that can bid – but also the conventional home buyer who is prepared to pay what that market demands at auction.
This new way of doing auction means that, if you have a property that is in a high demand price range and in a high demand area, when properly marketed you will attract all the buyers that could be interested.
And that’s the beauty of auction. It’s a transparent platform for qualified buyers to compete against each other for the property they want. Statistics in markets where this method of auction is used show that auction properties sell for maximum market value in much shorter times than other conventional selling methods.
Using the conventional selling methods, when you price a property and market it you will only attract people based on the price. If the price is too high you attract the wrong buyers. If it’s too low you sell for less than you should – and as a seller there is nothing worse than that.
However, when you market by auction there is no list price – only a price range. Buyers are attracted to the to the property for what it offers. They will determine the price – and in many instances a buyer will pay more for a property that the seller expects.
The old way of auctioning also costs the seller more in marketing fees – and the buyer pays a much higher commission – thus deterring buyers.
The modern auction method used in Australasia means the costs for selling by auction are the same as those using the conventional selling methods. So the next time you want to sell, why not find out more about how the modern auction works to see how it might work for you?
Principal, Harcourts Platinum
Director, Harcourts South Africa