Auction

The Auction is a marketing tool with the majority of the promotions concentrated in the first five weeks.  If you saturate various marketing mediums during a concentrated period your property should have been exposed to the majority of buyers in the market place.

Selling by auction is also an Exclusive Agency agreement. The auction process requires a more extensive marketing program and will usually limit the buyers due to the restrictions of buying under auction terms.

Promotion

This is considered by many to be the key to a successful auction, creating interest. The extent of the marketing campaign will depend on the amount the vendor is prepared to spend. At this stage the vendor's input is very important to help identify the probable market.

Three Chances of a Sale

An auction is a three pronged marketing push which means that there are three stages and therefore three chances of a sale:

Stage 1 - Prior to Auction

This is the concentrated marketing period. The pressure is on the buyer to inspect now or miss out.  Cash offers may be received in this stage by buyers trying to secure the property before the Auction.

Stage 2 - Auction Day

This gives you the opportunity of obtaining the highest cash price available on the day while being protected by your reserve price.

Stage 3 - Post Auction

Many properties are sold in this stage as the initial marketing has flushed out many prospective buyers.  The pressure is now on the buyers to come up with the price and terms acceptable to the vendor.  This stage also allows Buyers to submit offers subject to finance or other conditions.

Auctions Stay Sold

Most of the contracts on Auction Properties are unconditional and normally a 10% deposit is received.  This generally leads to contracts flowing through to settlement without delays or complications.

Skeptics judge Auctions solely from the success on Auction Day not realising that many properties are sold during Stages 1 and 3.  Averaging the success of Auctions over the three stages, it equals the highest success rate of any form of marketing.  The Auction Day itself is only 30 minutes in what is normally a leave at 90 day program.

We find that in the current market most auctions are selling after they have been to Auction and are listed at a price.  We therefore believe it to be far more beneficial not to auction in this market unless it is a particularly unique property.