From Going to Gone – Why Auction?
As vendors around the country gear up for Bayleys Big Call – New Zealand’s single largest residential property auction event which will take place across one action-packed week in February, 2017 – it’s time to hear it for the auction method.
The news media continues its fascination with the property market and barely a day goes by without a property-focused story making headlines. Price is the thing that gets the media most excited – and, it’s usually the main issue for sellers and buyers, too – along with achieving a timely result.
A vendor wants to get the best price for their property (in as short a possible time) and a purchaser wants a new property and the assurance that they’ve paid a fair price.
So, what role can an auction play in keeping both sides happy?
Bayleys’ national auction manager and national residential manager, Daniel Coulson, says the transparency of the auction process is what helps both parties agree on market value.
“This is played out time and time again in the Bayleys’ auction rooms throughout New Zealand,” he says.
“Buyers who have done their homework and got their financial and due diligence ducks in a row are given the opportunity to bid to their top dollar in a controlled and well-organised environment where they can see their opposition.
“The vendors have committed to an auction programme and want a sale on auction day. They’ve had comprehensive information based on potential buyers’ feedback from their sales agent in the lead up to the auction so have had the chance to consider this when setting their reserve price."
Coulson says the relatively condensed timeframe of an auction campaign usually brings a sale to a head within a 4-6 week period.
“Life today moves at a fast pace. People like to know what their next move is and when it is going to happen. Auction gives vendors an unconditional sale once the hammer falls and both parties have clear timeframes to work towards,” he says.
Buyers in the auction room can see other bidders actively competing for the property which gives reassurance around market value – this level of transparency is not possible with other forms of property marketing such as tender or for sale by negotiation.
“Bayleys’ auctions are conducted in line with the Real Estate Institute of New Zealand's best practice and at pre-auction meetings with our vendors, our auctioneers take the time to cover off all the possible outcomes and the best ways to move towards a successful sale,” says Coulson.
“Likewise, motivated buyers are given every assistance in the lead up to auction day to be triumphant in the auction room. No question is too trivial – we are here to facilitate a sale.”
Bayleys’ Big Call auctions are set down for one week in February 2017 – contact your local office to find out how you can be part of this action-packed event.