You’ve seen it on TV. A fast-talking fellow with a gavel yells out numbers, points a lot and boom! The place is sold. But what’s an auction really like, and should you opt for one when selling your home?
If you’re looking at selling one of your biggest assets, you’ll want to get the best return on your investment. A little research could go a long way toward getting the best possible sale price.
Luckily for you, we’ve done some of the footwork for you, and we also spoke to Jonathan Charles and Andrew Potts of Independent Property Group to get their insights. (Aren’t we nice?! Aww, shucks.)
There are several factors that might make a property suitable for auction:
Interest From Multiple Buyers
If you’ve got several people interested in buying your property, it creates a level of competition. This can help to drive up the price of a property, as no buyer will want to miss out – which brings us to our next point…
People Want to Win
It’s called FOMO (Fear of Missing Out), and it’s real. It’s a well-known fact that people want what they can’t have, or in this case, what they think they might miss out on. FOMO has been known to strike buyers at auction, which can only be helpful to you. After all, there’s no chance that buyer number 7 in the power suit wants to lose to buyer number 10 in the track pants!
People Love Quirky
If your property has its own personal flair, it will stand out from the competition, making it much more attractive to potential buyers. Everyone wants something a little bit different, right?
The Property is Hard to Price
If the property is hard to price, this might make it suitable for auction, which will help to reveal what the place is actually worth. Andrew says: “It’s about allowing the market to determine what it’s worth… it’s a true market value”. Just remember to do your research in advance, so you at least have a price in mind that you’d be happy to accept.
Auctions = Time to Plan
With an auction format, you’ll have time to build up interest in your place and ensure it’s looking ship-shape before auction day. Andrew offers his advice: “Make sure the property is prepared and looking its best in advance. Great photography will also help”.
Is the Property in a Well-Performing Area?
There are some areas in Canberra that are currently performing very well in auctions. These include redevelopment areas, inner areas of Woden and Weston and the Inner South. However, this doesn’t mean that properties outside of those areas won’t see success – Jonathan says it all depends on market conditions and trends, and how much competition is on the market.
So auctioning off your property is probably starting to sound like a great idea by now, right? But before you run outside and hammer in a big ‘For Auction’ sign, there are a couple more things to take into consideration:
Don’t Rush In
It’s important not to get caught up in the process and charge in full steam straight away. You want the best result, so keep that in mind at all times. On this point, Jonathan says: “It’s not all about having to let the property go on the day. If you haven’t got what you want, don’t be afraid to not sell on the day, and to revert to a price.”
Make Sure You’ve Spoken to an Expert
Before you decide whether or not to auction, you should make sure you’ve consulted an expert. It’s always worth getting a second opinion, too. Making sure you’re informed on the whole process from start to finish means you’ll have more control over (and insight into) what’s going on.
Recent data shows that Independent Property Group’s auction clearance rate is 84.3%, significantly higher than the Canberra average, which was recently quoted by Domain to be almost 72%. If you’d like more information or think you might like to auction your property, contact your local Independent Property Group office today.