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Chris Triscott

Licensed REAA 2008
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By Auction

Selling By Auction

The very best means of achieving a premium or fair market value for a property within a specified time is auction. The deadline for the sale creates a sense of urgency among buyers and sales consultants alike. 


The word 'auction' derives from the Latin word 'augere' which means 'to increase'. Dating back to Roman times, auction is one of the oldest methods of selling and yet today is the most advanced method of marketing real estate. Auction involves a short, sharp and intensive marketing campaign of a property without a price. This is to test the market to see what buyers, in a competitive situation, are prepared to pay to become the new owners of that property. 


Marketing with a price limits what a keen buyer may pay. Once a listing price has been established for a property, a ceiling has been placed on what a buyer expects to pay for it. Auction, on the other hand, offers a real opportunity to get more for a property than the seller might expect. 


My objective is for you to have the highest price possible offered for your property by the end of the auction campaign. A well-run auction programme will ensure that the property gets the maximum exposure. It is certainly the method that offers the highest degree of responsibility and control shared between the consultant and seller. 


Key Points

  • The sale is unconditional – a “cash “ sale.
  • All parties know the sale date in advance.
  • All parties know the settlement date in advance.
  • You can set the settlement that suits you.
  • All parties are focused on a result on the same day.
  • The sale deadline makes the buyers perform.
  • Price is removed as an objection so we can identify buyers who are emotionally interested. This only happens when a potentially wrong asking price is not an issue.
  • Your property is compared to others by its value, and not by its asking price.
  • The marketing is all over in a three to five week period. This maintains buyer interest and concludes  a sale before the property is over-exposed.
  • Buyers can see the competition and will compete to own the property.
  • Buyers can feel confident in “bidding again” when they see other buyers are also seeing the value.




THE THREE STAGES TO AUCTION 

There are three opportunities to sell a property using the auction method. 

STAGE 1: In the lead-up period high profile auction marketing will highlight the property, producing the greatest exposure during the period when enquiries are likely to be at the highest level. 

 STAGE 2: The auction itself is the shortest part of the process but it is the best opportunity to sell during competitive bidding in an open arena. 

 STAGE 3: Some people believe that if the property does not sell on the auction day then the auction system has failed. This is not true. Stage three provides opportunity to negotiate with those who may need to sell another property or arrange finance before they can commit themselves unconditionally.