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Why Auctions?
Auctions have proudly been part of the fabric of this fourth generation, family-owned and led business since 1902. This method of sale is one we believe in and have recommended to our clients since then. We still believe it’s the purest form of selling real estate.
Auction is a form of selling real estate where the market determines the price of an asset in an open forum negotiation, which is essentially what happens on auction day. Buyers can look each other in the eye and see what someone else is prepared to pay for it, and can then decide if it’s worth more to them and continue bidding, all on an open and even playing field in regard to terms and conditions.
The seller has the benefit of exposing their asset to the entire market, maintaining control of the process by only selling should their reserve price be met. It’s also sold on favourable terms as an unconditional contract gives security to the transaction that what a bidder offers, is what a bidder pays. During other methods of sale, so often the contract price is renegotiated, for example during a due diligence period, which might only come weeks or even months after the contract was agreed. Auction requires the buyer to do their due diligence prior to deciding how much they’re prepared to pay. Vendors can sell any time before the auction – if a good offer comes in; on the day – through competitive bidding and open negotiation on the auction floor; or sometimes when further negotiations are required, they can sell it post-auction.
No matter what state the market is in, an auction campaign, if carried out correctly, gives you the best chance of creating that competition between bidders to achieve the maximum price for the vendor. At worst, an auction campaign gives you a platform. A platform where post-auction negotiations can take place to still achieve the best possible outcome for the vendor, and for those unsuccessful, they become a pool of buyers for the future.