Auctions! For
some people it’s a scary idea, for others it’s a huge thrill! There are several
different ways to buy and sell a property including “Private Treaty”, the
“Off-Market Sale” and “Expressions of Interest”, but Auctions seem to be going
extremely well in SA at the moment. Current clearance rates (which means
properties sold at Auction and not passed in) for February are showing numbers
around 80% to 90%. So, should you consider an auction?
Here are a
few facts to keep in mind:
- The campaign usually runs for 3 to 4 weeks from the first open to the actual auction day.
- The process is completely transparent on auction day meaning you know exactly how many people are interested, who is bidding and how much they are offering.
- Offers can be made before the auction. How they are received can depend on the Agent and the Vendor. If the Agent and/or Vendor is confident that the property will sell at auction, they may refuse to look at offers prior.
- Buyers need to know exactly what their borrowing amount is before bidding as it’s a “cash unconditional contract”. The contract cannot be “subject to finance” or “subject to sale” or “subject to building and pest inspections”.
- Buyers need to complete things like building and pest inspections prior to auction day as there is no “cooling off” period and as stated above, no “subject to”
- 10% deposit is required at the fall of the hammer unless negotiated prior to the auction with the Agent.
- You can employ a Real Estate Agent to bid on your behalf which may help with stopping you from bidding with your emotions.
As with
anything, there are good and bad points to every method of sale – it is best to
do your research and pick the method that works best for you. Always keep in
mind that the “best result” is a quick sale for the best possible price and knowing
if it is currently a “sellers’ market” or a “buyers’ market” and how quickly
properties are selling, should be a deciding factor on which method of sale you
use.
If you would
like more information on any sale methods, please call one of our helpful team
members for a confidential chat!
(08) 8251 3249
info@spartners.com.au
