Hi all ! Wondering has anyone explored the concept of selling privately by auction ? Trying to research it and found this site (so glad I did) . If anyone has had any experience or any insight I would be grateful, found very little on line so far. Whilst i am aware there are certain procedures to follow I am assuming you can just hire an auctioneer. Thanks in advance. Newbie !!
Nothing stopping you from selling privately as an owner of a property. But you need to be licensed to perform auctions I'm sorry. You could potentially hire one, there's some freelance ones around (ie aren't tied to a particular agency). I'm not sure if they'd be willing to assist or not.
Thanks for your comment DT, and, yeah I am sure I could hire an auctioneer. I suppose I'm intrigued as to why nobody is doing it - FSBO by auction that is. It would appear to me that the biggest issue with an owner selling is the negotiating process. You know what they say... the worst person to negotiate on behalf of is yourself !! I figured an auction fixed that.
Auction only works well if there are multiple interested parties. You could do a silent auction just as easily.
There are plenty of freelance auctioneers eg. Under the Hammer who are used by agencies to provide an auctioneer if they are unable to provide the resources.
Thanks dabbler but that's really just a tender in disguise isn't it ? I want that excitement on the day.. I figure if I promote it effectively with premium online listings etc and don't come across as being an idiot about price expectation i can generate that interest/excitement ??. Having no experience with FSBO before i just dont know what to expect with level of interest
Are auctions popular and work well at the moment where you are ? Seems to me QLD has lower clearance rates, is what you have something unique or very desirable, or is it basically just another house ? If there is interest, silent auction or tender would work too, all these variables are for you to discover At the end of the day, the worst would be you fork out for Auction and campaign and then sell by negotiation.
Both auctions and private sales have their pros and cons. Auction: Pro: People can get emotional and bid more. It is an unconditional bid (so once sold it is good as done). You can see who is bidding and know the agent isn't saying there is one person interested or more (FSBO is different). Con Limits buyers because if a purchaser needs finance they will be less tempted to bid due to risk. If there is no interest (or people unable to bid) then it may fall over, this can hurt your sale price. You will likely only get $1,000 more than the last bidder but in saying so the bidder might of gone above their predetermined limit. Private Pro Buyers are blinded by what others are doing/saying (also a con). You hold all the cards You can use other offers against others to increase their offer (be careful if not experienced). Offers may very on very different sale prices (I have seen more than 10% variance) as again buyers are blinded. Con Sales will likely be subject to something and have varying settlement times. Sometimes it is hard to get people to make a decision as the property is there still tomorrow (sale by set date may assist but can also be detrimental if not sold by the date). Negotiating can be nerve wrecking (but same with the auction process). There are many other pro/cons for the different methods you need to select which method you prefer and what the market will dictate to you. E.g. Brisbane auctions do not fair to well compared to Melbourne which is considered the auction capital of Australia. Not saying that using the other 'non preferred' method wont work but it may or may not impact your result. Also yes you can hire an auctioneer, you can also always asked an auctioneer from one of the local REA to assist you and find out what fees he/she may want if they were to do it. Best of luck!
I think its actually a really interesting concept ! With the ability to research and promote property on line now, the only thing a FSBO can't do as well as the average agent is handle the negotiation process - typically because the worst person in the world to negotiate on behalf of is yourself ! So as long as you handle the marketing and enquiry process well there is no reason why it shouldn't be a success. I think buyers looking at FSBO offerings would be delighted to know thew seller was serious and appeared to be prepared to sell by going through the auction process
