To auction or not to auction?

There’s been a bit of talk lately about whether or not it is better to sell a home by auction or by private sale.
One isn’t necessarily better than the other and the way in which you choose to sell your home will likely depend on a number of factors such as the time you have to sell in and the type of market you’re selling too. Sometimes even if a property isn’t sold at auction, it can still be used as a tool to market a property and to identify serious buyers.
If you are confused as to the pros and cons of selling via an auction or private sale, then how are some of the advantages of each:
Auction Pros
  • Pressure, emotions and competitiveness can all lead buyers to higher prices than they otherwise might have paid.
  • An auction can be useful in determining the price of particularly unique and/or desirable properties. 
  • There are no price limits.
  • For many home sellers, the idea of a definite sale date can be very appealing, though this doesn’t always happen if the reserve price isn’t reached.
  • Having a set date for the sale helps encourage buyers to act quickly.
Private Sale Pros
  • A lot of sellers like private sales because it gives them time to mull over the buyer’s offers and negotiate if need be.
  • A private sale only requires one interested buyer, whereas an auction requires interest from at least a few buyers to be successful.
  • Potential buyers are unaware of how high others are willing to offer, and so they may want to secure the property by offering more themselves.
  • Private sales are generally cheaper because there are no auctioneering fees and marketing costs are likely to be less.
Your real estate agent will be able to offer you the best advice for your property so it is best to discuss your property sale with them, but if you have any questions regarding selling your home then please don’t hesitate to ask.