Why are auctions so popular now rather than having a set price?  It can put some buyers off. 

Sent in by Natalie from Stanmore Bay.

I can understand some buyers may be slightly put off buying at Auction.

However the benefits of selling at auction for the seller include: having a set date on which potential purchasers need to make a decision about buying the property; it can also create some competition which raises the possibility of the price exceeding the seller’s expectations, and the sale is unconditional – no strings attached.

In this rising market, the difficulty for sellers has been figuring out an asking price – too high and no buyers are interested.  Too low and the sellers could miss out on extra money.

Coming back to your initial concern that some buyers may be put off, I can testify that I have been a buyer myself lately.  I missed both Auctions and was very upset at one in particular that I missed out on!  On the other hand, it is always beneficial to know other buyers are keen to bid and it is comforting to know that they are prepared to pay what I was prepared to pay – even though a couple went slightly above my own budget.

Buying at Auction is a good way to buy and most agents provide Titles and LIM Reports, as well as give you a range or guide based on feedback.

Got a question?  Contact Anita Dobson via email or Facebook! As seen in this week’s Real Estate Outlook.

Disclaimer: All opinions expressed by Anita Dobson in this article are solely Dobson’s opinions and not necessarily the opinions of Harcourts Tandem Realty Ltd.  You should consider seeking advice from your own financial or investment advisor.