Auction versus private listing

Yep.  It’s true.  There is definitely a different feel out there right now.

Don’t get me wrong.  The market isn’t ‘taking off’, but there is certainly more energy and enthusiasm for property than I’ve felt in the sector for a long time. 

That’s why I remain a very strong advocate for auction versus private listing. 

The debate over the merit of going to auction has reignited in recent months with many claiming it doesn’t deliver results because it doesn’t match with the new breed of cautious consumer. 

An Australian Property Monitors economist was quoted a couple of weeks ago as saying, “When there are competing buyers, auctions maximise the market value of a property, but when there’s not a lot of competition, it’s the buyers who hold the whip hand.”

I disagree.  There is no doubt that it’s a high pressure, intense strategy but staging an auction involves more than simply laying a platform to generate competition between buyers.

A properly executed auction is the perfect way to identify serious potential buyers and provides the right conditions to negotiate a deal.  It sets a deadline and in the current atmosphere of caution the deadline is often the catalyst to making a decision. 

Even if a deal isn’t done on the day it opens the door for discussions with potential buyers who might otherwise not have played their hand.

It might not suit everyone but an auction campaign is certainly still worth careful consideration.