Real Estate

Auction not answer for all

KNOWING how to make the most of the auction method of sale can be rewarding.

John Owsnett, principal of Chambers Fleming Professionals Padstow, recognises that auction is a valuable method of sale and continues to increase in popularity.
“It is more important than ever to understand what auction can and can’t achieve,” he said.
“One of the biggest misconceptions about auction is that it will make a property automatically sell for more because buyers will compete and push the price above expectations.
“It’s important to remember that an auction is simply another method of sale, and like all methods of sale, if you haven’t done the right preparation during the lead up, an auction won’t save you.”
John says that what an auction can do is reduce days on market, create a competitive environment for sale among buyers and gain maximum exposure for the property with a condensed marketing strategy.
“Reducing days on the market is key because the longer a property sits on the market, the more chance there is of it selling at a reduced rate,” John said.
“Also, by removing price as a barrier, an auction invites buyers to make offers on auction day that the seller can either accept or reject.”
What if the property doesn’t sell?
John says this is one of the greatest fears sellers have about auction.
“But the answer is simple, just move on to the next stage of the selling process with either a price guide or for sale at a set price,” he said.