HOW good is it to drive around your neighbourhood and be faced with sold, sold, sold. For anyone with the slightest interest in property, it lifts the spirit, because when the property market is flat it seems as though everyone is talking doom and gloom.
Yet a few sold signs create excitement and energy and currently there is more than just a few of those large red stickers.
And rightly so it appears many of those sold stickers belong to auction listings which is hardly surprising. Queenslanders have stepped out of their comfort zone in recent years and accepted the process of auction to join our southern cousins who have been enjoying the benefits of auction for many years, and might I add, they have been doing so with much success.
It still makes me smile, the reaction you get when mentioning that taboo word, 'auction'. Oh, pardon me, did I swear?
It's funny though, that a prospective seller will quickly poo-pah the suggestion, yet on explanation and with the benefit of an open mind a smart vendor will take on board just what this method of promotion can do for them and their property.
Look at the benefits. What is the first red flag to send a prospective buyer moving on to the next advertisement? Price! It's as simple as that. In reality, price is the forbidden word.
Watch a buyer look at an advertisement and if they have an inkling of interest they'll look at the price and then discount that figure considerably, before even reading what is on offer.
Auction removes the biggest hurdle; there is no price to judge. The sales method of auction allows buyers to consider the merits of each individual property, what it's worth to them and whether they'd confidently pay cash for it, without a get out of jail free card.
As a vendor what could be easier? Spruce up the house and live that way for a limited period, not eons as in private treaty when the blessed sellers are always at the beck and call of a hot buyer or the slightest suggestion of an inspection.
I recall an agent telling me he would never advertise a list price as then there's no reason for any buyer to contact him or to inspect.
With modern technology every buyer soon knows all that is necessary. He's seen excellent photos, maybe even a video and the text gives a good idea of the seller's motivation. If no one contacts your agent, how can they sell the property?
Take away the price and decide whether what's on offer will meet your criteria. Then inspect to get a general feel, check out the location and then make that all important decision. What is it worth to you? This last sentence is the true crux of the matter. What is this property worth to you?
It is my understanding that in other states a buyer will arrange finance before house-hunting. Sounds sensible to me. Why waste your own time, that of an agent and most importantly the energy of a seller as they ensure their place looks its absolute best for each inspection.
Auction doesn't allow for you to sign on the dotted line and then see if you can obtain finance or for that matter change your mind. Auction dictates if you sign you buy, simple as that.
How peculiar when you realise it's the vendor who decides the method of sale and yet auction holds so many key elements from their perspective.
Selling property, and in particular the family home, can be one of the most stressful times of our lives so to any prospective sellers, I urge you not to hush your agent next time the word auction rears its ugly head - listen, you might like what you hear.
For more on property, pick up your copy of Domain free in Noosa News or in Saturday's Sunshine Coast Daily.
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