Should you sell via auction in a cooling market?

Deciding whether to sell by auction or private treaty is a common conundrum for home sellers, particularly when the property market is softening.

Auctions are often a no-brainer during boom times, when strong buyer competition and the fear of missing out helps ramp up buyer’s bids, however they can prove to be an effective method of selling in a cooling market too.

So is an auction for you?

Yes!

Good way to determine property price

One of the great things about auctions is that they tend to be fairly accurate at revealing the true market value of a property, which can be useful if the price of a property is hard to determine.

Sell quicker

Auctions provide a deadline for buyers, forcing them to act quickly to secure the property. Even if a property is passed in, buyers and sellers tend to come to an agreed price much faster than they would in a private treaty situation.

Brings out buyers

An auction will help a property get noticed! Buyers that are keen on a property up for auction will be focused and determined to “win” and will make sure they are ready to purchase on auction day.

No!

Not suited to every property

Different sales methods work best on different types of properties. It’s best to get advice from your real estate agent about the types of sales happening in your area and what sales methods are drawing out the best prices.

Not for every seller 

Some sellers find the auction process stressful, or are just private people and don’t want such a public sales campaign. Whatever the reason, it’s up to each individual seller to weigh up the pros and cons for themselves and choose a method of sale that they feel confident in.

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