We Love Auctions… because the process favours buyers if they have cash.
Even though selling via Auction disadvantages a seller, larger agencies promote them because it simplifies their responsibility to find a buyer.
No buyer limits themselves to only buying via auction. They don’t care which agency represents a property or the sales method being used; they only care about the property.
The truth is that auctions benefit buyers (especially when they have expert guidance). This is because in an auction scenario, even with multiple competing buyers, the winning bidder only needs to exceed the highest bid by as little as $1 to secure the property.
This stands in contrast to a multiple-offer situation (in a normal sale scenario), where buyers are compelled to submit their best offer without knowledge of how much other bids are, so they must go “all-in” to have the best opportunity to secure the property.
As professional selling agents, we have consistently demonstrated this principle, which is why we 100% advise against auctioning property to our selling clients. (We strive to always do what is best for every client we represent, regardless of whether they are buying or selling.)
In most countries, auctions are typically reserved for bank foreclosures or urgent sales where securing an immediate cash settlement takes precedence over achieving the highest price.
Consider this: Out of all potential buyers, only a fraction (roughly 10%) can actively bid at an auction, eliminating around 90% of their competition. While this dynamically affects a seller’s potential success, it offers a significant advantage for buyers, particularly when thorough research is conducted beforehand, leading to exceptional purchasing opportunities.
This is our speciality. We prioritize factual analysis over hype and noise, ensuring the delivery of reliable information to our clients. Agencies dislike when we represent clients at auctions because of our comprehensive understanding of the process. We possess the expertise to discern when to bid and when to walk from the auction.
For further details, please do not hesitate to contact us.