In Byron Bay, and the market more generally, there are always peak selling periods and within those periods there are periods where we see a lot of auctions.
In these periods, with so many auction listings coming onto the market, it’s natural to ask “Should I go to auction too?”.
David Gordon, principal of Ray White Byron Bay says the answer is, “it depends”.
At Ray White Byron Bay, we don’t always recommend an auction campaign, but it is generally our preferred sale method. Why?
David says there a few reasons actually.
Awareness and competition
In an auction campaign, we can generally bring more awareness and competition to bear for a property, thereby getting a fair market value.
In the end, it pays to remember auctions aren’t a magic means to get top dollar, but rather a marketing strategy.
By putting a price on a property, there’s a chance you could be creating anchoring bias to a price in the mind of the buyer.
With a For Sale campaign, there’s generally a perception of a “price cap” which may not get the fair market value for your property.
Placing a property under Auction gives all buyers the opportunity to assess the market to determine where it lies.
Moreover, an auction campaign generally will result in a faster result. And even if a property is passed in at auction, as a mutually satisfactory sale can usually be negotiated post auction.
With some recent fantastic results by Ray White, including the sale of 23 Childe St Byron Bay in just 14 days, and 72 Kennedys Lane Ewingsdale in just 4 days, it’s clear that auctions can yield excellent results for vendors, quickly.
Another good example is of two, very similar, co-located units. One was sold under the hammer via auction. The other, a private treaty sale, is still for sale.
With regional areas often seeing for-sale properties remaining on the market for longer periods than capital cities, having an auction date can create a sense of urgency in potential buyers, ensuring things like paperwork and finance are in order thus removing impediments to a sale.
An auction day can focus everyone’s mind on a result.
Having said that, a well presented, well-priced property offered under private treaty can also sell very quickly.
Faster turnover can affect area desirability
The uptick in our number of forthcoming auctions can also be partly attributed to recent successes in some streets showing vendors in the same vicinity that auctions work.
Fast turnover in property in an area can create a sense of desirability.
Whether to go to auction can also depend on time of the year. There are some definite key selling periods where an auction capitalises on this.
Auctions also tend to do well in improving or “hotter” markets as the market becomes a sellers market rather than a buyers market (though it’s important to remember the auction still provides the best means to assess fair market value).
The market is really strengthening after a period of consolidation, which is probably reflected in the increased number of auctions.
Whilst auctions aren’t always appropriate for a property, they will usually result in the best possible price in the shortest time frame.
However it pays to remember well-priced quality properties will always sell, no matter the means.
A good agent will always take the time to explain why a particular approach is appropriate to your property.
So if you’re thinking about selling your property and want to know what approach is best for your property, give us a call on 02 6685 6222 where our friendly sales team will be more than happy to discuss your circumstances.