It creates buyer competition by putting buyer against buyer and provides an open and fair arena for competition on the auction day.
Auction provides a structure to the listing process, and is regarded as the premium choice of marketing. Should an auction listing not sell during the auction programme, you will have increased your chances to sell the property as an exclusive ( price by negotiation or fixed price ) due to the enquiry and buyer activity generated.
The very best means of achieving the premium or fair market value for a property within a time frame is definitely auction. The deadline for the sale creates a sense of urgency among the buyers and the sales consultants alike.
The word “auction” derives from the Latin word “augere” which means to “to increase”. Dating back to the days of the Roman Empire, auction is one of the oldest methods of selling. To this day, it is still the most advanced method of marketing real estate.
Campaigning the Property
Auction involves a short, sharp and intensive marketing campaign of a property without price. This is to test the market to see what the 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.
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 sales consultant and seller.