Never has there been so much data publicly available about what’s happening in the property market. This makes it possible for potential purchasers to research and establish the likely maximum price they should pay for your property.
The best way to convince potential purchasers to raise their limit, is for them to realise that someone else is prepared to pay even more for your property. Creating competition is vital to securing the best price.
At Ray White, our entire family history has been based on creating competitive situations to achieve the best result for our vendors. Auctions have proudly been part of the fabric of this fourth generation, family-owned and led business since 1902. This method of sale is one we believe in and have recommended to our clients since then. We still believe it’s the purest form of selling real estate. Auction is a method of sale where the market determines the price of an asset in an open forum negotiation, which is essentially what happens on auction day. Buyers can look each other in the eye and see what someone else is prepared to pay for it, and can then decide if it’s worth more to them and continue bidding, all on an open and even playing field.
The vendor has the benefit of exposing their asset to the entire market and maintaining control of the process by only selling should their reserve price be met. It’s also sold on favourable terms as an unconditional contract gives security to the transaction that what a bidder offers is what a bidder pays.
With other methods of sale, so often the contract price is renegotiated during a due diligence period for example, which might only come weeks or even months after the contract was agreed. Auction requires the buyer to do their due diligence prior to deciding how much they are prepared to pay. Vendors can sell any time before the auction – if a good offer comes in; on the day – through competitive bidding and open negotiation on the auction floor; or sometimes when further negotiations are required, they can sell it post-auction.
No matter what state the market is in, an auction campaign, if carried out correctly, gives you the best chance of creating that competition between bidders to achieve the maximum price for the vendor. At worst, an auction campaign gives you a platform. A platform where post-auction negotiations can take place to still achieve the best possible outcome for the vendor and for those unsuccessful, they become a pool of buyers for the future.
Mitch Peereboom is committed to delivering the best auction service available in the market to the Ray White Queensland network. Mitch has carved out an impressive career by adopting an approach to auctions that sees his involvement from listing and marketing through to sale. His inimitable style and unsurpassed calibre of service has resulted in his consistent achievement of a clearance rate well above the industry average, across thousands of auctions.