Why Auction? Auction Vs. Traditional Listings

• Auctions have a bidding to start from price or no price, allowing a negotiation up.

• The marketplace does not know the sellers expectations or their final number.

• There is no ceiling to the value.

• Market decides the value.

• Buyers are focused on what the property has to offer without the distraction of a list price.

• Auctions are subject to a sellers confidential expectation/reserve, allowing a seller to be in complete control at all times.
  

The Strategy Behind Our Auction Process:

• All inspections, reports and disclosures are completed upfront.

• When a property sells at auction it is sold on an 'as is' basis.

• The buyer is required to complete all due diligence before signing the non-contingent purchase agreement.

• During the auction process the seller is in control and the seller dictates the terms.
  

Set Date

• Auction have a set sale date – auction day.

• Set date tells buyers the seller is motivated to sell, although not desperate.

• Forces buyers to make a decision and creates a sense of urgency amongst buyers.

• Buyers are more likely to view an auction property before a traditional listing, allowing seller to captivate the entire market.

• Set date allows market value to be found quicker as the process creates urgency and encourages buyers to make an offer for fear of missing out.
  

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Traditional Listings

• Traditional listings have a ‘for sale’ price.

• The list price immediately tells a buyer what the seller will accept and what the buyer does not need to pay.

• Buyers will always try and negotiate and offer below the list price.

• Buyers are focused on how much less they can buy the property for and how much they can negotiate the list price.

• If the property is not selling the only option is to reduce price.

• In a traditional sale the buyer knows the sellers reserve price –because it’s the list price.
  
  

The Process of a Traditional Listing

• In a traditional listing the buyer offers a purchase agreement, lists their terms and inspection periods.

• Buyer completes due diligence after making the seller agree to the purchase agreement.

• During contingency periods buyer has the ability to ask for repairs, price reductions and extended time to close.

• During the traditional process the buyer is in control.
  
  

No Set Date - Days on Market Are Your Enemy

• Traditional listings are marketed without timeline and with no set date for sale.

• Traditional marketing can be described as a passive approach with no set strategy.

• Can take up to months to obtain valuable feedback and discover market value.

• No set date means buyers are not forced to make a decision.

• Buyers keep looking at other property whilst watching the sellers property continuously sit on the market.

• Buyers will wait for a price reduction because they have no call to action.