The Tricks To Successful Property Auctions

by Harold S
(South Melbourne, Victoria, Australia)

My question is regarding selling our townhouse. We live basically in a inner city location of Melbourne, Victoria in Australia and have had a number of real estate agents appraise the house. There is a mixed view from the reports, as to sell by Auction or Private Treaty method. We have noticed that properties have been on the market for quite some time near and around our suburb area.

The appraisals are also wide in expected selling price, so we have taken the average. Agents are requiring between $5,000 - $10,000 for advertising etc.

We have purchased a property in another state, on the Gold Coast which is in Queensland and settlement is due to take place in March as the property we purchased is currently rented out. We are confused and very concerned if our house does not sell.

Which would you recommend and why?

Kind Regards

Harold.

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Hello Harold,

The two most popular selling methods described are
equally as successful.

I am generally concerned more on your comments about properties in your vicinity being on the market for generally a seemingly longer period of time.

The real answer may be also within your personal financial strengths, but assuming that finances are not so strong and a lot of your equity is in the property, then the Auction method may initially suit your needs. As you may be aware this method will place a marketing focus on your property - I would therefore suggest a short campaign so to receive buyer feedback and or offers, this will guide you in as far, to how the market will react on your property with respect to price - your terms may also be met with settlement in March and it is cash terms you sell under.

If the short auction does not provide this required outcome you expect then you will be best placed to sell by price, given you have received good communication from your real estate agent - On this point I suggest that the agent be instructed to deliver offers in writing and signed off by the potential purchasers to you, for consideration.
If you reach the private treaty selling period of the campaign, you have hopefully received offers or feedback to be best placed to having a realistic selling price set.

Ideally if you can achieve a sale under the auction terms you will be best placed to move on with your purchase in Queensland - as Private Treaty offers may involve other terms and conditions which may not be met to your timing.

Speak to your bank with regards to arranging finance for the other property settlement should things are not work out as planned.

Best Wishes in your decisions and sale of your home.

Your Sell My Home Advisor


For more information and tips on selling your home for the best price possible Selling By Property Auctions