There are many benefits to selling your home by real estate auction, as the process of the sale is a lot quicker. This is great if you need to be out of your house by a certain time, for instance, to move into your new property.
Buying a property by auction is becoming a more popular option for many Australians, according to the Real Estate Institute of Victoria (REIV).
In Victoria there have been 17,000 property auctions held so far this year. This is a rise of 13 per cent compared to this time last year.
At the same time, clearance rates have also improved during the same timeframe, rising from 60 per cent to 70 per cent on average.
If you are thinking of listing homes for sale by auction, then here are some tips you may want to consider.
It’s important that you find a real estate agent that you are comfortable with and who has a proven track record of auction listings. Their experience will help you to create a good campaign in the lead-up to the auction day, while also maintaining good communication with prospective buyers to keep them interested.
Don’t be afraid to ask agents about their experience with auctions and be sure to have a look at some of their current campaigns.
Set a realistic reserve price
While everybody dreams of making a substantial profit from the sale of their home, this is not always the case. Setting your reserve price too high can lead to your property being passed at auction, or failing to attract a desired level of buyer interest, so it is important to get this right.
Do your research and look at similar properties to yours on the market. Your real estate agent is there to help you throughout the whole process, so it pays to listen to their advice.
Create a good campaign
In order to attract buyers and increase your property’s profile in the market, you will need to create a good marketing campaign for your home. This may be advertising in property magazines, newspapers, online and through signage.
However, it’s important to remember to set a budget for this and stick to it, as advertising costs can add up to quite a substantial amount.