News & Media

August 23, 2016

Auction Right or Wrong

You may have noticed a wider selection of Southern Highland properties being taken to auction over recent months. Our team of local property experts are excited to be taking three diverse properties to auction on Saturday 3rd September at our office in Mittagong.

It has prompted many people to ask when is the right time to take a Southern Highlands property to auction rather than sell by private treaty.  In actual fact the decision is not just about timing.  It is also not just about the property.

It’s important to explain to any potential vendor that there is no set formula to automatically identify if an auction is the right option.  My team will recommend a sales option to a vendor only after careful consideration and inspection of each property; the unique circumstances in play across the local market as well as the national economy and the objectives of the vendor themselves.

For example an auction campaign can work very well for unusual and unique properties where it can be difficult for potential vendors to get a true sense of the value because of a lack of comparable properties. In such circumstances the transparency of the auction process allows potential buyers to clearly see the level of demand and value for the property as the auction itself unfolds.  That transparency is a strong platform from which buyers generate reassurance and motivation to participate in the auction process.

An auction campaign can also be the right choice at a time when the market is demonstrating very strong demand for a specific type of property.  At the moment residential family properties in prime areas, including Bowral and Mittagong, that are suitable for first home buyers are rare and subsequently generating strong demand. Auction can be the right option for those properties showing strong demand to set the right price, again with the auction process providing potential buyers with a transparent platform to guide their bidding decisions.

At the same time selling by private treaty is certainly an equally effective selling option for a wide variety of properties.  It is most commonly used across the Highlands as it allows potential buyers more time to consider the realities of a decision to ‘escape to the country’. 

The choice of auction versus private treaty is important and it is very individual. A McKillop Property agent will ensure every vendor has the right information to help them make the right decision to achieve the outcome for their circumstances and their property.