Compare Your Options: Auction Vs. Traditional Listing
- 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.
- 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.
- 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.
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.