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Author: Enotia Support
News Date: 21/4/2015 2:45 PM
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What is said here is most important for those selling hotels today:


There is a lot of misunderstanding in many sections of the community about the use of Public Auction as a mop-up marketing strategy. Many home owners think that Auction is a great 'last resort' selling strategy - the ultimate eraser of past marketing mistakes and righter of all poor decisions made in their earlier Private Treaty marketing. While it is true that many vendors go to Auction after failing to sell by Private Treaty, it is not hard to work out the flaw in this argument.
Vendors often think they will try to market their property by Private Treaty at an inflated price just to see what happens. When asked for an explanation, many say 'Oh, if I don't get my price I can always auction it.' But what happens at Auction when months of marketing at an inflated price haven't secured the dream price the vendor was looking for?
Sadly, by the time the vendor has given up on Private Treaty, the property is likely to be over-exposed and it will attract bargain hunters, no matter what method of sale is used. Valuable time has been lost, and unless the market is trending up, the sale price is likely to be lower than if it had sold more quickly.
Once a property has been on the market for a long time, buyer interest falls. Auctioning at this point rarely creates the competition needed for a high price. Buyers know the vendor is unrealistic and often stay away from the auction - a death knell to hot bidding. The best case scenario is that the auction will attract bargain hunters - another great way of keeping the price down.
In reality, no method, used as a last resort, will deliver optimum results. Holding out for an inflated price, no matter which marketing method a vendor starts with, will usually end badly - no matter how good the 'last resort' selling technique of choice is. There is no safety net fix-it strategy for selling over-exposed properties.
Whichever method a vendor chooses to sell their property, it is important they do proper research into the market in their location and set the reserve (auction) or the asking price (Private Treaty) so that the property sells within the first month or so of marketing. 'Last resort' options shouldn't be in the vocabulary of a home seller who wants to get the highest price for their property and they certainly don't replace realistic response to market conditions and a firm hold on the reality of price expectations.

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Chris Tinning & Company
117 Byrnes Road
North Wagga NSW 2650
Ph: +61 (02) 69 710032
Fax: +61 (02) 69 710032