If you have a property to sell or are thinking about selling your property in the future, you might wonder what method is the right method to sell your property. Should you seek a private sale or sell it at a public auction?
Not all properties are best suited for public auction, but many are suitable candidates due to their location, price, age, and/or scarcity.
If you’re considering a public auction, here are six factors that will help you determine if your home is suitable to sell at auction.
Six Things that Make a Property Public Auction Worthy
If your property is located in an area that hosts tons of auctions and strongly favours them, it may very well be auction worthy. Melbourne is dubbed the “auction capital of the world” and hosts hundreds of auctions on the weekends.
In many areas, you’ll find that sales occur predominately through auctions and buyers are leery if a property is on the market as a private sale. Their natural response is to wonder what might be wrong with the property.
You’ll need to do your research surrounding the price points of properties for sale at public auctions. Your property needs to be in the right price points, so if you’re trying to sell a multi-million-dollar luxury property on auction, chances are that’s not the most effective or profitable way to do so.
High-end properties in the $5 million plus range are typically sold through a private sale.
Auctions require that two or more buyers bid and at high-end price points, there are typically less buyers. You might have one buyer in your range, which doesn’t constitute an auction.
On the same note, properties on the lower end of the price point—under $300,000—are often best suited for private sales. Buyers within this market are typically less experienced or first-time home buyers and find auctions overwhelming.
If your property sits within the middle price point and isn’t selling at either end of the spectrum, it may be a very good candidate for auction.
- Period Features
If your home has period features and is in good condition, it’ll likely appeal to many owner occupant buyers.
Buyers view ornate details and high ceilings as charming. Added character gets buyers competitive and that screams auction.
If your home has high demand potential due to its unique charm and period features, it’s definitely suitable for auction.
If your property needs quite a bit of work or appears to be in poor condition, often the best way to sell it is on auction.
Properties in a poor state that need some tender love and care often attract strong competition among buyers, because you have handy buyers, who want to get in a desired area and are prepared to do the work, bidding.
If you have a rare property that is highly unique or has scarce features, and it’s difficult to find market comparables to pinpoint a proper selling price, selling on auction might be your best bet.
Properties with large acreages, cliff-top views, or one-of-a-kind features or locations can bring price clarity at auction.
- Private Sale is Proving Difficult
If you’ve already tried to sell your property in a private sale and it’s proving difficult, or you’re in a hurry, your home is a good candidate to sell at auction.
If you have questions about whether your property is a good candidate to sell on auction or on a private sale, contact us to speak to a qualified real estate agent. We’d be happy to offer advice and guidance.
You can also check out our blog for more helpful tips and information.