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Auction vs Traditional

Auction vs Traditional

 

Success Rate

Harcourts Auctions Traditional Listings
  The Harcourts Auctions process has over a 90% list to sell ratio.  On average, the list-to-sell ratio is between 30% and 50%.
 

Pricing

Harcourts Auctions Traditional Listings
  • Auctions have a bidding to start from a price or no price, allowing negotiation upwards.
  • The marketplace doesn’t know the seller's expectations or their final number.
  • There is no ceiling to the value.
  • The market decides the value.
  • Buyers are focused on what the property has to offerwithout the distraction of a list price.
  • Auctions are subject to a seller's confidential expectation/reserve, allowing a seller to be in complete control at all times.
  • Traditional listings have a for-sale list price.
  • The list price immediately tells a buyer what the seller willaccept.
  • Buyers will always try to negotiate and offer below the listprice.
  • Buyers are focused on how much less they can buy your property for and how much they can negotiate your list price.
  • If the property isn’t selling, the only option is to reduce the price.
  • In a traditional sale, the buyer knows your reserve price – because it’s your list price.
 

Strategy

Harcourts Auctions Traditional Listings
  • All inspections, reports and disclosures are completed up front.
  • When a property sells at auction it is sold on an ‘as is’ basis.
  • The buyer is required to complete all due diligence beforesigning the non-contingent purchase agreement.
  • During the auction process the seller is in control and theseller dictates the terms.
  • In a traditional listing the buyer signs a purchase agreement, lists their terms and inspection periods.
  • Buyer completes due diligence after making the seller agree to the purchase agreement.
  • During contingency periods Buyer can ask for repairs, price reductions, and extended time to close.
  • During the traditional process, the buyer is in control.
 

Set Date

Harcourts Auctions Traditional Listings
  • Auction have a set sale date – auction day.
  • The set date tells buyers the seller is motivated to sell, although not desperate.
  • Forces buyers to make a decision and creates a sense of urgency amongst buyers.
  • Buyers are more likely to view an auction property before a traditional listing, allowing us to captivate the entire market.
  • Set date allows market value to be found quicker as the process creates urgency and encourages buyers to make an offer for fear of missing out.
  • Traditional listings are marketed without timeline and with no set date for sale.
  • Traditional marketing can be described as a passive approach with no set strategy.
  • Can take months to obtain valuable feedback and discover market value.
  • No set date means buyers are not forced to make a decision.
  • Buyers keep looking at other property whilst watching the sellers property continuously sit on the market.
  • Buyers will wait for a price reduction because they have no call to action.
 

Control

Harcourts Auctions Traditional Listings
  • Viewings and showings are restricted to Open House times only to further assist qualifying interested buyers.
  • The listing agent is always in attendance during showings to sell the home and defend any feedback.
  • Agents are able to monitor feedback from buyers as all open house attendees must give their information before entering the property.
  • Interested parties must all view within the same open home.
  • All people are called if an offer is received before the auction to ensure an equal chance and the best possible outcome.
  • The listing agent may put a lock box on the property and allow buyers to go through the property at any time.
  • Buyers permitted to view the property alone – gives them a feeling that they are the only ones interested in the property.
  • The agent has a disconnect with the buyers' feedback as they aren’t present during the viewings and do not understand the true features and benefits of the property.
 

Inquiry

Harcourts Auctions Traditional Listings
 Our Auction listings have experienced at least 50% more inquiries than a traditional listing, with every property receiving at least one offer before auction day.  Traditional listings received at least 50% less inquiry, which means less competition.

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