Why we’re the number one auction lister!
Bayleys Individual Auction Award
Our team's outstanding success in achieving the Individual Auction Award for 2022/2023 can be attributed to our careful and meticulous approach in selecting the properties we bring to auction.
We have sold 13 properties via auction, pre-auction & pre-market with a success rate of 77% for 2023 so far.
Last week, I discussed why auctions don't always work. However, don't get me wrong; it is still a superior sales method - it just doesn't work for every property.
If a property does not sell unconditionally at auction, there is still Plan B: changing the sales method to "By Negotiation" or "Asking Price" afterwards. There are both pros and cons to this. Transitioning to a sale by negotiation opens up the possibility of attracting buyers who may have been excluded or reluctant to participate in the auction process.
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However, because of the transparency that an auction provides, what happened at the auction might potentially serve as a benchmark for other interested buyers when considering the value of your property.
For example, if a property is worth $1,500,000 and the last bid at auction was $1,200,000, buyers might potentially use that as a benchmark and offer slightly more than $1,200,000 post-auction.
Having said that, here are a few examples of the types of properties that best benefit from an auction method:
Hot Market Conditions: In a seller's market with high demand and limited supply, auctions can be an effective strategy to capitalize on the competitive environment.
Properties with Development Potential: Land or properties with development potential, such as large plots, properties with subdivision possibilities, or those suitable for commercial conversion, can benefit from the competitive nature of auctions. Developers and investors are often attracted to auctions as they seek unique opportunities and are willing to bid competitively to secure them. The exception is if the property is situated on a flood plain or lacks waste or stormwater services.
Properties with Uncertain Market Value: If the market value of a property is uncertain or difficult to determine, an auction can help establish its true market worth.
Single-level brick and tile: Brick and tile homes are often sought after by buyers due to their durability, low maintenance, and aesthetic appeal. They are known for their solid construction, energy efficiency, and ability to withstand different weather conditions. These features make them attractive to a wide range of buyers.
If you’re interested in whether the auction method best suits your property, get in touch for a confidential appraisal with me today.