What are the benefits of an in-room property auction?
Selling your home at auction has a raft of well-known benefits, such as potential quicker sale times, higher sale prices and more competition between buyers. But when it comes to the auction itself, the reason behind the location of the auction itself isn’t always as clear to buyers or sellers. Here, we explain the pros and cons for the two types of auctions – in-room auctions and street auctions.
What is an in-room auction?
In-room auctions occur when the actual auction is held at another site, usually in professional auction rooms. While you may be more familiar with on-site or “street” auctions from photos and television programs, this format isn’t suitable for every property. In-room auctions bring certain advantages for some properties.
Benefits of in-room auctions
As they’re held inside, in-room auctions give the agent and auctioneer greater control over the variables on the day, and can allow them to maximise conditions for a higher sale outcome.
Other key advantages of in-room auctions include:
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A more professional environment with only serious bidders turning up, creating better conditions for pre- and post-auction negotiations and greater control over the auction itself.
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An increased pool of potential buyers. As numerous properties will often be auctioned on the same day, buyers who miss out on their first preference might then bid on other similar properties on the list, increasing the chances of your property being sold.
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Control over the sales order, allowing experienced agents to carefully plan the order to maximise the opportunity for every property to be sold on the day.
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Minimal impact from the weather, parking availability and other factors that arise outside.
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Control over the timing of the auction. Saturdays are usually the best time for street auctions, but holding the auction inside lets the agent find a time that’s suitable for their target buyer, evenings, for example.
Benefits of on-site auctions
As they’re held at the property, on-site auctions are used to draw focus to the property and street appeal. Giving buyers a chance to see the property before and during the auction also creates an emotional connection and helps buyers decide if they can picture themselves living there.
Agents might also choose an on-site auction for the following reasons:
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A great location, which helps buyers get a good feel for the area and street they’d be living in if their bid was successful.
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If the property has enough space to hold the auction without drawing attention to any potential downsides for buyers, such as small living areas or busy roads.Desirable property features, such as well-maintained gardens or high-quality appliances.
If you’re thinking of selling or buying a property at auction, we invite you to contact anyone in our team today.
