Did you hear the ridiculous price they got for that place up the road?
Runaway auction stories are abound at the moment, and it’s very tempting for vendors to join the frenzy in the hope of getting more than they expected. And why not? In a rising market it’s often hard to know exactly what your property is worth, and an auction is a very good way to test that.
The sale is ‘unconditional’. You’re protected by the reserve price. And there’s the fear of missing out – where emotional buyers are pushed to their limit and often beyond.
But auctions can be very stressful on vendors, not just buyers, and as a general rule of thumb, three out of seven properties are still sold by private sale. A private sale gives you more say in what you think is a fair price. You have time to consider offers, without being put on the spot. And greater flexibility to negotiate terms that suit both parties, especially if you’re not in a rush to sell. With Auctions there’s no guarantee they’ll be successful, or even get you the best price – the winning bidder only has to offer slightly more than their competitor, which may well be less than they were willing to pay.
Like everything, it’s horses for courses, and you need to discuss the options carefully with your agent.