The amount of properties on the market in the Sunraysia area has increased to a whopping 2246 in all categories priced from $50,000 to $950,000!
Properties in the key postcodes of Mildura 3500, Irymple 3496 and Red Cliffs 3498 are all vying for buyers from the same buyer pool in their relevant price range.
As a Seller…this amount of property means buyers have a lot of choice. An Auction campaign however tells buyers they have a date upon which to act, or possibly miss out. Your property stands out from the crowd.
As a buyer… this means you have a genuine opportunity (as Auction sellers are serious and aren’t just testing the market) to place an offer either before or on the day of Auction. The process is transparent whereby you can see your competition standing right next to you! Either way, both parties benefit from the opportunity to ‘do a deal’ or negotiate from the Auction.
What if it doesn’t sell? That’s ok, usually negotiations continue to a point where both parties do reach agreement on price or conditions shortly after Auction. If not, the Seller has the option to continue marketing the property via their agent using a pricing method.
Why Not price it first then Auction? The problem with this is that your property may suffer the ‘price reduction syndrome’ that so many other agents are willing to suggest first. Also if you go to Auction after the property has been priced then it looks like you ‘have to sell’. Usually after the first 6 weeks in the market and not being SOLD, buyers will ask “what’s wrong with the property?”. In most cases it is simply a price issue, but you’ve missed the prime selling time! A better option is to have your agent gather buyer feedback on price throughout the marketing campaign (buyers are savvy and do their homework on comparisons), then it’s the agent’s job to position buyers to be there on the day.
How long does an Auction campaign run for? Usually 4-5 weeks is long enough. Vendor statements and Auction contracts need to be available early in the campaign so buyers can do their due diligence on the property. Solicitors/Conveyancers need to be notified by your agent at around 2 weeks before going to market.
Does it cost more to Auction? Not with Ray White! Some agencies charge for Auctioneering but as the Principal and Auctioneer for Ray White Mildura, Craig Kerr offers his Auctioneering skills at no additional cost.
There may be some minimal extra costs involved in your solicitor getting relevant certificates to prepare Auction contracts, but this should not be prohibitive.