5 Reasons to Auction Your Exclusive Property

Are you looking to sell your property in exclusive suburbs like Peppermint Grove, Claremont, Dalkeith, Nedlands or City Beach? An auction may be the best investment you make when selling your home. 

Potential Buyers Get To Really “See” Your Property

When a property is marketed as an auction, the price tag isn’t there to distract people from your property. Through advertising, editorials and visits to your property, people will start to formulate what they are willing to pay for it. This is one of the reasons why auctions in exclusive areas work. With beautiful, fashionable and feature-packed houses like the ones in Perth’s Western Suburbs, potential buyers get to experience what living in an exclusive property like yours could be like.

Removing the price tag from an exclusive properties also helps produce the holy grail of property marketing – the person who “falls in love” with a property. In fact, up to 20% of properties are sold before the auction. Instead of relying on the price to sort buyers, the property itself will attract those who are truly interested. This has some great benefits including….

Raising Your Property’s Profile Draws More Than Motivated Buyers

The marketing campaign that surrounds the Auction is vigorous and effective. This gives your property a status in the property market as a “must see” and, if it reaches the buyer early, can establish your property as a benchmark to judge others in the suburb. In addition to motivated buyers, the profile of your property will attract those who are “just looking” or who think “maybe one day”.

This is a good thing!

Motivated buyers do not know who will bid seriously and those who won’t, once again reinforcing the competitive nature of auctions. In addition, your house’s one-of-a-kind status will be emphasised. It is not unheard of for someone to fall in love with the house and transform from a “maybe one day” perspective to a motivated buyer when they see it in person. Whilst it’s not advisable to focus your marketing campaign around this possibility, these people can add to the drama and suspense of the auction.

BUYERS BEWARE: 

All real estate vendors are not experts in marketing a property for auction. A one-size-fits-all approach can be disastrous, hurting the eventual selling price. Careful strategising and professional expertise in execution is key and should only be done by a person with a successful track record of selling at and after auction.

Auctions Give the Right Impression

When it comes to the property you’re selling, there is only one and it is unique. Being forced to openly ‘compete’ with other potential buyers can push the price up during the suspense and drama of a live auction. Just watching any shows like “the block” or “under the hammer”, demonstrate the drama that can come from auctioning a property. This can really work in your favour if the marketing leading up to auction is done well.

The reason for auctions gaining high selling prices in your suburb is the same reason they may not work elsewhere – the image of luxury, exclusivity and quality. Whether it is a boutique apartment on the river or a mansion complete with manicured gardens and a swimming pool, a property that is auctioned speaks to what quality-minded buyers are looking for. Your agent will tailor the way the property is marketed so that it speaks to the specific demographic you are targeting and emphasise these qualities that your property possesses.

There are Less Opportunities for Post-Offer Blues

When you sell your house by auction, the sale is unconditional. Yes, really. No more worrying about finance not being approved, no building or termite inspections for you to organise and usually a 30 day settlement really puts your mind at ease. In a place like Peppermint Grove or Claremont, where the difference between a successful sale and simply taking the offer can be hundreds of thousands of dollars, this can really alleviate the worry of how long a property will stay on the market or the possibilities of offers falling through. 

Auctions Get Better Offers – Even After the Event

Auction day provides a unique environment for buyers to openly compete with one another improving chances of achieving the highest selling price. Approximately 20 - 25% of properties sell under the hammer and the chances improve if you use a reputable real estate agent with a history of successful auctions. This, however, is not the best news. On the day to 48 hours after the last hammer goes down is where 38% of properties sell. These are not just sold at the reserve price, either. Often shy or unsure buyers who did not participate in the auction can offer figures you may not expect. This time, from auction day to two days afterwards is the true power of auctions.