Dispelling the Myths of Auctions
Auction as a Buzz Word
There is no doubt that the buzz word in real estate for at least the last 12 months in Geelong and the surrounds has been ‘Auction’. It is a word that instils both excitement and a little bit of fear in the minds of both buyers and sellers. Specifically, for a seller, the process comes with a mix of anticipation, trepidation, and nerves. There are many who have sworn that if they were to sell they would not go down this path, however there is a sense of fear and expectation that dictates that they should.
The fear of failure is the biggest one, and this means both failing to exploit the potential of the property in the current market and trying to maximise its value; and then there is the fear of the process failing. The fear of the unknown: will I get my price? Will anyone come? What happens if we don’t sell? What happens if we don’t get any bids? All of which are valid and consistent questions from potential sellers. The fear of not getting the best possible outcome because a seller did not go to auction is also a common thought of many sellers, and the right advice can alleviate it all.
With the current shortage of property on the market, and the strong clearance rates for our region, it is a sale process that must be considered if you are contemplating selling. If the process is managed correctly, there should be no surprises come auction day. An experienced real estate agent should be able to allay any fears that a potential seller may have before deciding on the auction as a sale method, and be flexible enough to guide their vendor through the process.
An auction is simply a glorified private sale, with the only significant difference being that on week 4 or 5 of the property campaign, there is a group of people out the front of the house bidding to buy your home.
Why have auctions become the social norm in relation to selling in many suburbs of Geelong?
Auctions were once considered the sale process for homes that offered something unique, yet, are now becoming the preferred method of selling. There are many factors encouraging the preference of auctions as they have become more socially accepted in our market place in response to the high percentage of buyers from metropolitan Melbourne who are happy to compete for property due to their higher perception of value. It is short, sharp, and succinct, and a home that is offered for sale by auction is given a defined timeframe that it will be offered for sale for; giving buyers and sellers a sense of closure. An auction property does not need to be sold under the hammer for it to be a success; in most cases it can be sold prior too, on the day or after the auction; and this is key for the agent to demonstrate. The process is more creating the best possible outcome for the seller, and not just about getting it sold for a price, but getting the absolute best price.