Sales

Should I sell prior or just wait for the auction?

It’s always a hard thought to sell prior to auction when a campaign is running well. Though in some instances it’s worth going down that route to get the best price.

It’s not a simple decision, once you make it, you may jeopardise the whole auction campaign. Once you take your buyers this way, if you don’t sell, they are most likely not going to be there for the auction. The other factors you must remember is that unless it’s three clear business days prior to the auction, the offer is subject to cooling off, this means that after you put all your buyers through the process, you still have to wait three days until you can put a sold sticker up.

But if your agent is not just a typical agent that runs everything to auction to build their name, then you might be surprised with the outcome. We always run best and final offers when we sell prior. This means that we ask all the buyers by a set time and date to give their absolute best and final offer that we will take to our sellers.

Depending on the buyers that are interested, the next best bid may not be the best price. Say for instance your property sits between first home buyers grant and just outside. This would attract many buyers who would limit their expenditure to the top of the threshold.

On the other hand, you will also attract buyers who have nothing to gain from the grant and have larger budgets. At an auction the first home buyer will only bid up to a certain amount, with the winning bid going to the other type, the problem is, for them it was a steal because they had so much more to spend. If it were to be sold prior, this would force that buyer to offer their maximum offer so they would have the best chance of winning the property. This could be the difference of tens of thousands of dollars or even more.

If your agent has a strong belief that this would be the best option to get the best price, it’s worth listening to them and ask them how they would go about it. If their strategy is logically sound and will get the best performance from the potential buyers, then it may just be worth taking a punt. I’ve personally always enjoyed selling property prior to auction, but I will only act if it makes sense to do so.

 

DISCLAIMER

The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.

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