Nambour Real Estate | Auction vs For Sale
Auction vs For Sale
Benefits of For Sale / Fixed price
Setting a list price is generally easier and less pressure on buyers as it give them plenty of time to consider their options. Buyers will always want to negotiate under the asking price, so it is important to advise your agents what your expectations are. Private sales are more appealing to buyers but generally take longer as the urgency is removed from the process compared to an Auction.
The Sunshine Coast real estate market and in particular the Nambour Real estate market has seen positive growth and clearance rates on properties For Sale is between 60-90 days on the market. Call your local Blue Moon Property Nambour real estate agent for the right advice when selling your property.
Why sell at auction?
As the Nambour real estate market conditions continue to improve, real estate Auctions on the Sunshine Coast are attracting large numbers of buyers. Well marketed auction properties tend to attract more genuine buyers and sell 30% faster than those sold by private treaty. Simple things such as picking your auction date serve to create a sense of urgency and provide a competitive atmosphere on auction day that is ultimately essential if you are looking at getting the best price for your property.
How will your Blue Moon Property Nambour real estate agents prepare your property for auction?
• Formulate a marketing campaign to get your property maximum exposure: Your Blue Moon real estate agent will run a multi-faceted campaign that is designed to maximise your sale price and attract the right set of buyers.
• Organise as many Open home inspections as possible
• Help conduct research on the market to help you reach a reserve price. Apart from implementing a highly focused marketing campaign, you will need to:
• Pick your auction date and select your “open days”
• The contract of sale is on your terms and the conditions of the sale are predetermined
• Settle on a reserve price (your marketing campaign can be used here as it is a key indicator of the market’s mood.
Selling prior to auction Potentially one of the biggest attractions to the auction process is that they offer extra opportunities for the sale of your property - an offer can be made before, at or after the auction. Should a buyer make an offer prior to auction, you would have to consider two main questions:
• Will the buyer still turn up on auction day?
• Are there other interested parties?
While the answer to the first question will depend largely on the buyer’s motivation, your Blue Moon Nambour real estate agent will be able to help you answer the second question because they will have spoken to all interested parties.
What to expect on auction day
Before the auction begins, the auctioneer will arrange one last open house inspection. Your Blue Moon real estate agent will also be required to display legal documentation which the auctioneer will detail in an announcement. The auction will then start by the auctioneer asking for an opening bid. They will then set an amount by which all bids must rise. Once the reserve price is reached, the property is considered to be on the market and will go to the highest bidder. If your reserve price is not reached however, the auctioneer will confer with you to determine if you are happy to sell at a lower price. If you have property for sale, talk to your local Sunshine Coast real estate agent and get the best advice on what selling option will suit you.
Buying at auction
You need to prepare before buying at auction. Try to go to a few auctions first to see how they work. There is no cooling-off period for buying at auction. If you are the successful bidder at the auction, you will have to settle the contract even if:
- the house doesn’t pass inspections
- you change your mind
- you can’t afford it.
The terms of sale usually require you to bid on an unconditional basis. This means you cannot have any conditions, such as:
- subject to finance
- subject to the completion of another sale.
- Before the auction, make sure you:
- inspect the property
- arrange your finance
- get a property valuation
- do your own research of the market
- get a copy of the contract
- get legal advice about the terms and conditions in case you’re the successful bidder.
Make sure you ask the agent about:
- how much deposit they will ask for (as a percentage of the winning bid)
- how you’ll need to pay it (a personal cheque, bank cheque or deposit bond is usually okay).
Remember to do all the necessary checks, such as a:
- title search
- building inspection
- pest inspection
- swimming pool inspection (if relevant).
Set a budget before the auction and stick to it. If you are the successful bidder, you will have to settle the contract, even if you can’t afford it.
If you want to bid:
- ask the auctioneer if there have been late changes to the contract (they must announce the terms at the start of the auction too)
- ask any questions you have about the property
- register with the auctioneer.
Only registered bidders can bid on the day. The auctioneer will give you a unique identifier such as a numbered paddle.
The auctioneer must:
- state their name and the conditions of sale at the start of an auction
- display their name (in 15mm text or larger) throughout the auction.
- be able to show you a copy of their licence if you ask to see it.
They need to announce the conditions of sale. These might include:
- the required deposit
- inspection details
- any other relevant details.
They may use the unsigned sale contract to disclose the conditions of sale.
The reserve price is the minimum sale price that the seller will accept. The seller sets the reserve price in writing with their agent before the auction. A seller doesn’t have to set a reserve price, but most do.
The auctioneer must not:
- indicate whether the seller has set a reserve price
- tell you the reserve price.
Once the reserve price is reached during bidding (or no reserve price is set), the property will be ‘on the market’. The auctioneer does not have to announce when a property is on the market, but they are allowed to do so if they wish.
An announcement must be truthful—an auctioneer cannot announce that a property is on the market if it has not yet reached the reserve price.
Once a property is on the market, it means the auction must result in a sale. The winning bidder must purchase the property, and the seller must sell.
If the property doesn’t reach the reserve price, you can negotiate with the seller after the auction. If this leads to a sale, you will get the 5-day cooling-off period.
The successful bidder
If you are the successful bidder, you must sign a contract immediately.
There are very serious legal consequences if you cannot settle the sale on time. You may be forced to pay:
- the amount of your winning bid, regardless of whether you had access to the money
- the cost of re-auctioning the property
- any shortfall between your offer and the winning bid at the next auction.
On the Sunshine Coast in Queensland, auctioneers can accept ‘vendor’ (seller) bids, but only up to the reserve price. Before the bid reaches the reserve price, the auctioneer can:
- bid on behalf of the seller
- accept bids from the seller (or their representative).
The auctioneer must announce if a bid is a vendor bid.
If a vendor bid is announced, you know that a reserve price has been set, and that it has not yet been reached. Once you reach the reserve price, any more vendor bids will become ‘false bids’. False bids are illegal. Talk to our team of real estate agents for the right advice when buying Nambour Real estate on the Sunshine Coast.