In feedback from our buyers, Auctions are polarising! Some people love them for the complete transparency and real time bids under Auction conditions, and some do not like the thought of making quick decisions in a high pressure situation in a public setting. Either way, an Auction can be an effective strategy to achieve a great result for our vendors.
Sometimes we launch a property as part of an Auction campaign, however through buyer feedback we soon realise that it is in the best interest of our clients to either move the Auction forward or begin taking offers on the property and begin negotiations prior to Auction. We do this to take advantage of a peak competitive environment, and many factors can influence our decision on when and how we do this, including other properties on the market, amount of buyer interest and how motivated our buyers are to secure the property.
In a strong market like we have at the moment, Auction campaigns are popular. However, the question is whether a property will run for the entire Auction campaign, which is usually 4 weeks. Running a property through the full 4 week campaign allows us make certain that no stone is left unturned in reaching as many buyers as possible through our database, major real estate portals, social media and print marketing. This may suit some properties and the buyer/seller circumstances relating to the sale, but this could also change at any time. For example, some properties can have a competitive environment build up very early in the campaign with buyers making strong offers. This would indicate to us that a property is in high demand and buyers are prepared to pay a premium price to secure the property, therefore we would take advantage of this strong interest by bringing an Auction forward or start negotiating with interested parties.
At Cunninghams this is what we call an ‘Adaptive Auction Strategy’ where we are able to recognise when we should bring an Auction forward or start taking offers to sell prior – we tailor our approach to suit our sellers and buyers in order to achieve an optimal result. We do not operate an automatic ‘one size fits all’ sales process that will just achieve a result, we are committed to achieving the best result we can given market conditions at the time.
Please get in touch if this raises any questions or if we can help you make your next property move.