Selling Your House at Auction A Good Idea – If You do Your Homework
Home auction is an accepted way of selling property in Australia, whereas, in the United States this method of sale is usually only utilized to sell “distressed” properties, such as foreclosed houses.
Although Australia’s housing market has been somewhat affected by global financial problems, it is not in the depressed situation found in the U. S.
Fewer people are buying houses at auction, compared to past years, and the reserve price (the price revealed by the seller only to the auctioneer) is often not met and the house withdrawn from the auction.
From the most recent statistics available, typically 25 to 30 percent of houses sold in Melbourne were sold at auction, 20 percent of those in Brisbane and 10 to 15 percent in Adelaide.
The prices for new homes are encouraging. After a drop of 9.4 percent in March of 2012, prices rose again in April 6.9 percent. All these houses may be sold during the building process, not involving auctions, but buyers don’t always come from rental properties. Some own their own home and are moving up or, in the case of “empty nesters” are moving down, reducing the amount of their living space. In any event, we can expect the above percentages of auction sales in Melbourne, Brisbane and Adelaide to continue at the same rate if new home sales continue to move up.
Movers in Melbourne are very happy to see the improving home sales outlook, whether sold by owner directly to the buyer, sold by an agent or sold at auction. Every sale, by whatever method accomplished, means business for them.
The wet weather has contributed to the business of people who do office removals. Office Removals in Brisbane have increased since the flooding there, of course.
Although the bidding at auction hasn’t been as energetic this year, it should recover within the next year or so to normal levels.
People who sell at auction have to be prepared to move immediately. Movers in Melbourne may have a temporary slowdown, overall, but those who continue to provide excellent service will continue to do well.
Office removals in Brisbane should have increased business as people move out of wet locations to temporary locations, then again when they move to permanent quarters.
Advantages of home auctions to sellers are obvious. They can schedule the times of open houses, if any are held and, otherwise, only have to open the house for inspection 30 minutes before the auction starts. They can set a “reserve price”, calculated to be the least they will take and, if the property isn’t bid up to that price, they have the option to negotiate a sale with the highest bidder.
If you are a potential buyer, however, and you plan to buy from auction, do your homework. Find out how much comparable properties in the same neighborhood have sold for and set a price you won’t exceed. Take a friend with you who has attended and bid at auctions and allow them to do the bidding for you. Have your 10percent down payment available, as you have to pay that before you leave the auction. Have your financing lined up, as the entire deal must be settled within less than a week. All auction sales are “as is” nor do you have any statutory right to change your mind.