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[av_heading heading=’Benefits of Selling by Auction’ tag=’h1′ style=’blockquote modern-quote modern-centered’ subheading_active=’subheading_below’ show_icon=” icon=’ue800′ font=’entypo-fontello’ size=’6vw’ av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=’20’ av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#000000′ subheading_color=” seperator_color=” icon_color=” margin=’0′ margin_sync=’true’ padding=’0′ icon_padding=’10’ link=’manually,http://’ link_target=” id=” custom_class=” template_class=” av_uid=’av-kry5b1tc’ sc_version=’1.0′ admin_preview_bg=’rgb(34, 34, 34)’][/av_heading]

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[av_heading heading=’Introduction’ tag=’h1′ style=” subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=’15’ av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=” custom_font=” icon_color=” margin=’15,,,’ padding=’10’ icon_padding=’10’ link=’manually,http://’ link_target=” id=” custom_class=” template_class=” av_uid=’av-r3j8tm’ sc_version=’1.0′ admin_preview_bg=’rgb(255, 255, 255)’][/av_heading]

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As we near the spring selling season, potential vendors are likely talking to real estate agents about the best way to sell their current property. Particularly in New South Wales and Victoria, it’s very common to sell your property through the auction process.

There are several benefits for vendors choosing to sell by auction.
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[av_heading heading=’Manufacturing Competition’ tag=’h1′ style=” subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=’15’ av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=” custom_font=’#000000′ subheading_color=” seperator_color=” icon_color=” margin=’25,,,’ padding=’10’ icon_padding=’10’ link=’manually,http://’ link_target=” id=” custom_class=” template_class=” av_uid=’av-kry5bjz5′ sc_version=’1.0′ admin_preview_bg=’rgb(34, 34, 34)’][/av_heading]

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If you’re hoping to sell your property for more than it might be worth, the only way you can do that is by having multiple bidders trying to buy it. If you have two or more interested parties, you have a chance that the sales price will keep being pushed higher. If you’re selling by private treaty with only one interested party, that’s unlikely to occur. 

One of the main advantages of going to auction is that it naturally manufacturers a certain level of competition between would-be buyers. These buyers are forced to compete for a property on auction day, and this often leads to a very good result for the vendor, particularly if your property is in a sought-after location.
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[av_heading heading=’The Emotional Element’ tag=’h1′ style=” subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=’30’ av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=’15’ av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#000000′ subheading_color=” seperator_color=” icon_color=” margin=’25,,,’ padding=’10’ icon_padding=’10’ link=’manually,http://’ link_target=” id=” custom_class=” template_class=” av_uid=’av-kry5bwg3′ sc_version=’1.0′ admin_preview_bg=’rgb(34, 34, 34)’][/av_heading]

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If you’re selling a property and the likely buyer is an owner-occupier, the auction process can heighten the emotional aspect of the purchase. When buyers form an emotional attachment to a property, this can then lead to higher sales price for a property on auction day. Generally speaking, most people don’t buy many homes over the course of their lifetime and being required to buy through auction is daunting for many potential buyers. 
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[av_heading heading=’Unconditional Sale’ tag=’h1′ style=” subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=’30’ av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=’15’ av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#000000′ subheading_color=” seperator_color=” icon_color=” margin=’25,,,’ padding=’10’ icon_padding=’10’ link=’manually,http://’ link_target=” id=” custom_class=” template_class=” av_uid=’av-kry5c9u1′ sc_version=’1.0′ admin_preview_bg=’rgb(34, 34, 34)’][/av_heading]

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When selling your home by private treaty, you are negotiating with a buyer on both the sale price and the terms. When buying a home at auction, the terms of the sale are normally laid out in advance, including how long you have until settlement. Generally, when the hammer falls, the sale is unconditional, which means there are no sunset clauses or opportunities for a buyer to back out. This puts the seller in the driver’s seat and means they can lay out how they want the sales process to unfold.
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[av_heading heading=’A Quicker Sale’ tag=’h1′ style=” subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=’30’ av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=’15’ av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#000000′ subheading_color=” seperator_color=” icon_color=” margin=’25,,,’ padding=’10’ icon_padding=’10’ link=’manually,http://’ link_target=” id=” custom_class=” template_class=” av_uid=’av-kry5ckcc’ sc_version=’1.0′ admin_preview_bg=’rgb(34, 34, 34)’][/av_heading]

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The auction process usually takes place over a number of weeks leading up to the auction day itself. Having this hard end date in place often leads to a faster sale. Purchasers know the property is going to be sold and are thus required to be organised and act quickly if they are interested in buying the property. Private treaty sales can become drawn-out processes with a lot of negotiation, and if there is only one interested buyer, this has the potential to continue for many months.
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[av_heading heading=’You Can Still Sell Beforehand’ tag=’h1′ style=” subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=’30’ av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=’15’ av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#000000′ subheading_color=” seperator_color=” icon_color=” margin=’25,,,’ padding=’10’ icon_padding=’10’ link=’manually,http://’ link_target=” id=” custom_class=” template_class=” av_uid=’av-kry5cwcp’ sc_version=’1.0′ admin_preview_bg=’rgb(34, 34, 34)’][/av_heading]

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Even if you choose to sell through the auction process, that doesn’t mean you can’t accept an offer prior to auction day. If you have a keen buyer who is putting up a strong offer and it’s one that you’re happy with, you are still able to accept it. Knowing that the property is going to sell at auction can often motivate buyers to approach the vendor with attractive terms, in hopes of persuading the vendor to sell to them direct.
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Disclaimer: This is general information only and is subject to change at any time. Your complete financial situation will need to be assessed before acceptance of any proposal or product. The Content provided herein has been prepared for informational purposes only. The Content does not constitute tax, legal or accounting advice and should not be relied upon as such. You should seek tax, legal or accounting advice before acting or relying on any Content.

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