Auctions
Selling at Auction with dgre
At Dethridge Groves Real Estate we know auctions. For a variety of reasons, most properties throughout Western Australia are sold via Private Treaty with most property owners rarely considering an auction as a viable alternate method of sale. When considering selling your property, it is sensible to equip yourself with as much information as possible, including the option of selling via auction. At dgre, we have managed hundreds of successful auction campaigns and for the right property in particular market conditions, choosing to auction your property can deliver extraordinary selling outcomes. With Hayden Groves and Michael Harries both licensed Auctioneers, we have the expertise and experience to get your property sold under the hammer.
Why sell by Auction?
Selling your property by auction is the most transparent, fairest way to sell real estate. The conditions of sale, including the reserve price, are set by the seller and are consistent for all buyers that bid on the auction day. This means the seller can set the conditions of sale that suit their circumstances, such as the settlement date and deposit amount. The sale is also unconditional at the fall of the hammer, lessening the chance of a sale falling through prior to settlement. An auction campaign also gives sellers three distinct opportunities to sell, prior to auction, under the hammer or shortly afterwards. It is the competitive nature of an auction in an open public forum that often reveals a higher-than-expected selling outcome. We can share many stories of successful auction days and fabulous outcomes for our valued clients!
Is an Auction right for my Property?
Most properties are suited to a well-considered auction campaign. There is a common myth that an auction doesn’t work in WA. Whilst it is true most property sells via Private Treaty, due to its public, transparent process, an auction reveals an accurate ‘snapshot in time’ of genuine market value, revealing what buyers are prepared to pay for a property. This is particularly relevant in circumstances where it is difficult to accurately assess a property’s value, in situations where legal transparency is required (such as an Executorship) or where a strict timeframe for a sale is required. Talk to us about whether an auction will suit your situation.
Bidding and Buying at Auction
Buyers are often anxious about bidding at auction; it can be an emotional experience.
Here are some tips if wanting to buy at auction:
- Quiz the agent and/or auctioneer about the likely market value of the property to determine affordability. Remember that these estimations are often marginally below the likely outcome.
- Seek an introduction to the Auctioneer to ask them how they will conduct the Auction.
- Don’t be reticent to tell the Auctioneer and/or Agent that you intend to bid; there is no advantage to just turn up on the day and bid as the Auctioneer cannot sell the property to you anyway unless you bid at or above reserve price.
- Have your finances in order as most Auctions will not allow conditions such as subject to finance approval as part of the standard conditions.
- Arrange for building and/ or timber pest inspections to be done prior to Auction day and check that everything in the property is in sound working condition.
- Obtain a copy of the contract for sale in order to determine settlement date and deposit details.
- Practice making bids with family and friends.
On Auction Day:
- Arrive before the Auction commences to be sure the conditions of Auction haven’t changed since you last inspected the property.
- You may need to register as a bidder and this is common practise.
- Set yourself a limit with a small degree of flexibility. A skilled Auctioneer is there to get you to the highest possible price, and it’s easy to get carried away with the process and end up paying more than you wanted to.
- Have a deposit cheque / direct debit ready.
- Don’t rush and be prepared to ask the Auctioneer to slow down if you feel the pace is going too quickly.
- There is no wrong or right way to bid; you can raise your hand or nod your head to acknowledge acceptance of the Auctioneer leading the bidding or you may call out a figure to place that bid.
- The Auctioneer is entitled to call a vendor bid but can only do so below the reserve price set by the property owner. Think of these bids as a counter-offer to your bid and a legitimate way of attempting to reach a reserve price consistent with market sentiment.
- If the property fails to reach reserve price and is passed-in, the highest bidder closest to the reserve price is often given the first opportunity to negotiate with the seller after the Auction so it’s in your interests to participate if you’re keen to buy.