WHEN TO CONSIDER SELLING AT AUCTION
It’s no secret that I’ve been pretty scathing of real estate auctions lately. Actually it’s more that I object to some agents spreading untruths and propaganda about them – for their own gain.
But I’m also on record plenty of times over the years as saying that Auctions have their place. There are occasions where an Auction may be the way to sell.
So you may be wondering: “When is Auction a good way to sell my property?”
The simple answer is this: Situations where getting a sale is more important than extracting the best price.
Think about all the unwanted junk collecting in your garage or under your house. Rather than throwing it away you may as well try to get something for it.
So what do you do?
Take it to the local Auction house – or throw it on trademe.
The goal is to get rid of it. The price you get is just a bonus.
And think about why people go along to the Auction Clearance Sales? To get a bargain.
This is why many mortgagee sales are put to Auction. It’s just got to go.
The bank doesn’t care about you walking away with as much as possible.
And again, what sort of buyers turn up to mortgagee auctions?
Another example are rural stock sales. Sure the farmers want to sell for as much as possible – but it must be sold on the day. They certainly don’t want their sheep trucked back to their farm.
Getting them sold is a higher priority than getting the best price.
And that is what auctions are designed to do…
To get a sale. Not the highest possible price.
Which is why agents love them so much. Their focus is getting the commission. On turnover. They are much better-off getting a quick commission than focussing on getting you the most possible in your hand.
So long story short – YES Auctions have their place.
If you are desperate to sell.
If getting it sold is more important than maximising your net sale proceeds, then consider putting your property to auction.
Although I’d suggest there are smarter ways to get a definite sale while also achieving a much higher price.
Watch Episode 1: https://www.restate.nz/auction-deceptions1
Watch Episode 2: https://www.restate.nz/auction-deceptions2/
For more info on how to Keep the most from your sale… https://www.restate.nz/selling/