Selling without an agent doesn’t limit you to a private treaty sale. Auctions are just as manageable and you can appoint a professional auctioneer, for considerably less than it would cost going through an agent. The real considerations are your own motives for selling, what works in your area and whether you have to sell to meet a deadline to settle on another property. Many agents will encourage you to sell via auction, not only because it costs more to market an auction, and all things going well, has a finite end date, allowing them to move onto the next vendor’s sale. But since you are in control, you're able to consider the best solution for your needs.
There is no right or wrong way to sell. buyMyplace has compiled the pros and con of both, to make your choice a little easier:
- Going Going Gone -. If all goes to plan, it will be over when the auctioneer yells “Sold!” Auctions create a sense of urgency and competition among buyers which can increase your sale price.
- No cooling off period – At auction, once the property reaches the reserve price, it will be sold. The sale is unconditional. Vendors can also specify settlement terms to suit themselves.
- Arguably higher prices – Vendors have security knowing the property must reach a minimum “reserve” price before it can be sold, and as there is no cut-off price, the end result could substantially exceed that amount.
- More than one way to sell – This methods creates different avenues to sell. Buyers often make an offer before the auction to avoid stress at auction which you can choose to accept prior to the auction, or, you can sell at auction as planned. If your property is passed in, you can then negotiate with highest bidder afterwards.
Auctioneer costs – There will be additional costs with engaging an auctioneer. At buyMyplace though, an auctioneer will cost you considerably less than via a traditional agent.
- Marketing Costs – Advertising costs are usually more expensive for an auction with a traditional agent, but at buymyplace, it is the same as private treaty sales costs.
- Pressure to reduce your reserve – Agents may pressure you to reduce your reserve price to secure a sale, however, because you are in control you can escape this stress somewhat.
- Auctions don’t work in some areas – Some places, especially some rural areas, are less successful with auctions with high rates of passed in properties.
Going to auction with buyMyplace is easy. Purchase the Auction service for $895 as an add-on to any of the buyMyplace campaigns.