There has been recent media interest in the age-old question whether sale, auction or private treaty is the best method of disposing off a property.
A real estate auction is an effective way of selling a property. But it would involve intense marketing campaign and in most cases the process would last up to four weeks.
It is a win-win situation for all the parties involved.
Auction is a viable option in today’s market conditions, where sellers are not sure what to expect from the sale of their property.
On the other hand, buyers can gain confidence when they see competition from other prospective buyers.
The marketing process of auction usually generates more interest than other methods and since the price quotient is left out from the equation, the seller could expect to receive the true market value of the property.
Buyers come prepared to buy and are pre-qualified.
Sellers are in total command throughout the auction campaign and have the final say in setting the reserve price. Hence, sellers do not lose control of the price they expect but as the process is transparent, they are kept informed of market situation feedback throughout the campaign, which should always be kept in mind.
Buyers can get some respite from the fact other bidders would also quote similar prices, boosting the confidence of everyone involved. The final price is usually determined quickly, eliminating long and tedious negotiations.
A home is like a product or commodity. Sellers should not be emotionally attached once it enters the market for sale.
A sustained and well-structure marketing campaign is important. As it is often said, “What is not visible is not saleable.”
Marketing enhances visibility and procures the best possible price, in tune with the current market trends.
Professional help imperative
It is important to engage the right salesperson to market and sell a property.
Sellers should interview several agents, small and large, and obtain references and success stories.
You may not benefit by opting for an agency’s top-volume seller, who may have listed 50 homes, of which he or she had sold 30 in the past, while another agent may have listed 20 properties and sold 18 of them.
Opting for a friend or family member who is an agent does not assure results; in fact, it could strain relations.
Choosing an agent who suggests the highest listing price or a person who quotes the lowest commission are not recipes for success.
Remember the SEED qualities in an agent: Smart, Empathic, Experienced and Dedicated will usually get the job done right.
Mohit Seth is a licensed Salesperson under the Real Estate Agents Act 2008, a member of Real Estate Institute of New Zealand and works at Harveys Austar Relaty Ltd, Blockhouse Bay in Auckland. Phone (09) 626 6119 Mobile 021-124 1155. Email: mseth@harveys.co.nz
