Bathurst Blog

Ever felt the rush or excitement of an auction? Ever clutched the side of the couch whilst reality television drew out the tension, or tucked up on a Saturday morning with a coffee on social media streaming it live? Ever wondered what the buzz is all about? Have you ever had an interest but just not known where to start?

Then let’s talk auctions.

Auction is a process of public sale in which goods or property are sold to the highest bidder. For real estate, auction is a valuable method of approaching a sale when time is of the essence. Auction intensifies the process of buying and selling property; it is a fast and effective way of achieving a sale. Very popular with metro markets there has been a considerable rise in the interest for auction properties in the Bathurst market.

For the Bathurst market, auction properties co­me up around 3 to 4 times a month. Particular style or houses in Bathurst typically seen at auction are older federation homes with emotional value added to them. Buyers and Vendors are draw to the charm of the property, and with the added emotional attachment, we see them sell very well at auction.

The basic rule to remember here is that vendors want a sale and a purchaser doesn’t want to miss out, so if you are considering putting your property on the market and you need a speedy result you may well want to contemplate auction. But what do you need to know? Where should you start?

Why auction?

From a vendor’s point of view, taking a property to auction fast tracks their process while giving prospective purchasers an end date that they need to be committed by. This is a huge amount of benefit for the vendor, ensuring that the sale is resolved quickly. Auction also provides the vendor with the added security of ensuring that the home is unconditionally sold by a set date. For a purchaser, whilst this process is accelerated, it also opens the opportunity for offers to be made prior to auction, potentially eliminating their competition.

When should you consider auction?

An auction is a 4-week concentrated campaign where the property is sold on the auction date or prior. With the average time for a property on the market being 60-90 days, auction with its shortened days on the market, is a great method of sale for time poor vendors with the expectation of a quick sale.

With an intensive marketing campaign including larger advertisements, signboards and consistent open houses each week leading up to that date, the auction process is an effective sales approach with a definite deadline to work towards.

Can you purchase before auction?

You don’t have to wait until auction to make an offer, and most vendors will consider offers prior to. Auction creates interest - so if you are a purchaser in a position to act before auction date then you may be able to eliminate your competition by proposing an offer. A purchaser putting their best foot forward before an auction date could remove the potential of another buyer outbidding them at auction.

What happens if it doesn’t sell on auction night?

Although we have seen a recent increase in properties sold prior to auction, there is always the possibility that things may not go to plan. In this scenario, vendors remain ahead of the curve with the ability to take advantage of the intense marketing and interest drawn form the campaign. The property for sale is now listed at a price, and all potential purchasers who have shown interest in the property during the campaign are notified. The newly contacted purchasers are now within their rights to negotiate. If house doesn’t sell on that day previous results have shown that in over 80% of the time it will sell 3-4 weeks afterward.

Lead up.

Due to the intensive nature of the auction process it is essential for all parties to be prepared. For both vendor and purchaser all aspects of the transaction need to be organised very quickly, as a property cannot be taken of the market until it is exchanged unconditionally. So if a purchaser wants to purchase at auction, they need to have pest and building inspection completed, unconditional finance organised and cheques ready, all before auction date if they want to stop that property going to auction. The rule here is: be organised. If you are interested contact a real estate agent first, who will explain the steps and ensure that all elements are smooth sailing.

If you have any questions regarding your property or the auction process, contact the Raine & Horne Bathurst office, we are always happy to assist.