THE ADVANTAGES OF SELLING BY AUCTION
If you ever take a trip down under to Australia or New Zealand where Timothy Toye first learned to sell real estate, and visit cities like Auckland, Sydney or Melbourne, you may notice something very interesting if you pick up a newspaper there. Almost all of the homes are for sale by auction. It is the preferred method of selling for something like 70% of home owners. And not just big auctions with multiple properties. Some auctions are done with just one property. Sometimes in the front yard of the home for sale. Similarly in Ireland. Why is that? We rarely see homes sold by auction in this country. Yet selling by auction is perhaps the oldest form of selling, and just about everything else is sold by auction. There are many advantages, and we list them below. Is it that we have just become fixed in doing things one particular way?
Removes the price objection.
Instead of buyers focusing on the price, they are forced to focus on the property itself. Your position is strengthened as a seller. In fact the main feature of selling by auction, is that it is marketing without a price.
Puts your property on a pedestal.
The property gets immediate attention ahead of anything else on the market.
Intensive marketing accelerates the selling process.
You maximize the number of buyers made aware of your property and therefore you maximize how much you get for it and how quickly you sell it.
Allows for the possibility of competitive bidding to drive above what you might otherwise achieve on the market. You've heard of "Auction Fever". Nothing reassures a nervous buyer about the amount of money they are paying for anything than to see others clamouring to buy the same thing. There is a saying in real estate: "Fear of loss is a greater motivator than the desire to gain." We have seen this proven, time and time again. Auction marketing, or marketing without a price exploits this truism to your advantage.
Gets your property sold for the highest possible market price, even above what might be achieved by other forms of selling.
Any seller wants to maximize his or her's price, so why wouldn't this be a consideration for you?
Gets your property sold as quickly as possible without compromising the price you get for it.
Allows you to control the selling process.
Showing your property will largely be by open homes, so you can confine showing times to those that are most convenient to you. You will set a reserve on the day of the auction, so you will not risk underselling the property, and yet you are free to accept offers before the auction, or if your reserve is not reached on the day of the auction, to sell afterwards.
Your chance of selling for cash is increased.
Normally only cash buyers may bid for your property at the auction. They must have released their inspection contingency, so that your chance of a quick, straightforward, trouble-free sale, without the buying backing out mid-stream, is greatly enhanced.
Timothy Toye's Down Under Experience
"In Auckland, New Zealand during the 1980s I was involved first hand in the introduction of this form of selling real estate as a first-up approach for the typical home seller. It took a few years to really catch on and become the form of selling preferred by sellers. But it caught on because of these obvious benefits mentioned above. The success rate with my residential sales team over a number of years was 93% of properties sold within 90 days. This was my personal experience in selling numerous properties by auction myself and running a successful residential sales team pioneering this method.
Why is this form of selling not more common in the United States? Amazingly enough, it has never been developed as a marketing strategy with any consistency by real estate companies in this country. The few auctions that are done, are conducted by auction houses, rather than real estate companies, who are actually better placed to do this. I think it is simply a lack of experience in it, or perhaps circumstances have not required this level of creativity?"
If you would like to consider this form of selling as a creative marketing strategy, Timothy will be happy to make a full presentation to you.