Why auctions can be a great way to sell property in any market

Auction clearance rates are sometimes quoted as the key indicator of performance in the property market. Every weekend, major newspapers quote clearance rates for specific areas, which are often then used to legitimise claims that the residential property market is either booming, subdued or favourable to vendors or purchasers.

 

However, even if clearance rates are on a downward trend, auctions should still be considered as a mechanism with great potential for the selling of different types of properties.

 

As a franchise owner, you should always try to assess the success of auctions within your area from a holistic perspective – not simply by reference to clearance rates; interpreted in isolation from other key market figures, clearance rates can be deceptive when trying to gauge the pivotal supply-demand relationship that exists within any property market.

 

Instead, you and your team might want to consider developing some creative strategies for using auctions to convert listings. When devising such strategies there are several factors to keep in mind including, but not limited to:

 

·         Whether the property has a unique architectural style:  An auction can be an effective way to target buyers who might be interested in distinctive or innovative features;

·         Adrenaline fuelled buyers: in the heat of the moment bids may come through that are higher than the market value of a property;

·         The potential that an auction has to quickly convert a listing into a sale; this can be advantageous to both your business and vendors;

·         The marketing advantage:  Auctions tend to have a high profile, which when combined with five or six weeks of intense marketing can create a heightened interest surrounding a property.

 

Sometimes, key statistics such as clearance rates can dissuade real estate agencies from pursuing different sales techniques. However, if employed strategically and appropriately, auctions do have the potential to be an effective tool for converting listings – in any market.

Posted by George Tarbey on 10/08/2012 at 11:22 AM | Categories:

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