7 reasons why auction is the best way to sell in a hot market

It’s no secret that when property listings are scarce, auction rates lift. And that’s why we’re seeing so many properties listed for auction in Byron Bay right now. Here are seven reasons why auction has become the preferred choice for sellers in the current market.

1. Competition for limited stock

Since the start of the pandemic, an increasing number of people have been keen to make a move to Byron. However, a shortage of listings has led to enormous competition for every property, forcing prices up. As a result, limited stock and strong buyer appetite make auction the ideal way to get the highest possible price for a property – something we don’t expect to change any time soon.

2. Creating a sense of urgency

There’s often a lot at stake for bidders at an auction. It’s not just about securing the perfect property but fulfilling the dream of moving to a new area and living a whole new lifestyle. This pursuit of a dream can drive a buyer to stretch themselves to win a home at auction, increasing the value of a property and resulting in a strong outcome for the seller.

3. It's completely transparent.

Going to auction is the best method of getting complete transparency about market value – particularly when prices are constantly moving upwards. Bidders can see first-hand who they’re competing against and how much they need to bid to win the deal in real-time. In addition, there can be no doubt about the property’s true market value as the process is entirely out in the open.

4. A shorter marketing period

The beauty of going to auction is that it reduces the number of days a property is on the market. Marketing campaigns run for three to four weeks to attract the interest of the maximum number of people in the shortest amount of time. In addition, the short marketing period allows sufficient time for a buyer to create an emotional connection with the property, which often results in a willingness to pay more on auction day.

5. Enjoy reserve price protection.

When a seller goes to auction, they always set the minimum price they are willing to accept from a buyer. However, if this reserve price isn’t reached, the seller can always negotiate with interested parties after the auction. That said, this often isn’t an issue in the current market, as many auctions achieve a sale price that far exceeds their reserve.

6. No cooling-off period means a fast and efficient sale.

One of the main benefits of going to auction is that the buyer immediately enters an unconditional contract with the seller once the hammer falls. This means on the spot exchange of contracts, making it a fast and efficient method of selling a home with the peace of mind that the higher price you’re likely to achieve at auction won’t fall through.

7. More control over the process.

When a seller decides to go to auction, there’s always a specific end date, which gives both buyer and seller plenty of time to get organised. It also means that the seller can define their terms upfront, so the buyer is 100 per cent clear that if they win the bid, they have fully accepted the terms.

We can help you achieve a great outcome.

Sale by auction is a powerful method of selling and an excellent way to achieve the best price for your property in the current market. At Ed Silk, we always use highly experienced auctioneers with a long history of getting excellent results. Therefore, if you’re thinking that now could be the perfect moment to sell your property, please get in touch as we’d love to help.

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