Melbourne’s softening real estate market has put the spotlight on Melbourne’s obsession with Auctions.
Unlike the rest of the world, the default position for Melbourne’s real estate agents is to sell the property by Auction.
However, there is often a huge difference in selling price between auctioning a property with a real estate agent and using a Vendors Advocate to sell a property privately.
If you are thinking of selling your property you’d be very wise to ask the question – Is An Auction The Best Way To Sell My Property?
It’s easy to see how the Auction process benefits real estate agent:
- The vendor is ‘locked in’ early and it’s difficult to withdraw from a sale. The agent’s fees are also ‘locked in’.
- The process from appointment to the sale of the property can be a little as 4 weeks. Real estate agents are therefore able to sell more properties.
However, does an Auction benefit the vendor? In many cases, the answer is NO!
An auction is unlikely to achieve maximum value in a cooling market for the very same reason a property is likely to achieve maximum value in a strong market.
Humans are like sheep and take their lead from the herd. If their peers are showing interest in a property by showing up to an auction and placing bids then they are much more likely to bid. They value the property more in this type of environment.
Similarly, if they show up to an auction with few people in attendance and even fewer bids, the property will be seen as less desirable and less valuable.
A good vendor advocate will help you avoid using real estate agents that subtly push you towards auctioning your property for no good reason.
JMAC Vendor Advocates will conduct a thorough analysis of your property, your requirements, and your local market to determine if an auction or a private sale is appropriate.
This is just one way we help maximise profit for our clients. Call us on (03) 9071 0145 so we can meet up in person and learn more about you and your property.