Graeme Elvin of Mackenzie Elvin

When you look to market your property you may be told, 'yes, go to auction, your property is sure to sell …..before the auction….. at the auction….. or after the auction” – hmmm.

There are advantages in going to auction; the limited and concentrated time frame builds the tension, which may increase the sale price.

If you achieve a sale it is unconditional so there is no mucking around with unconditional dates, you may avoid lengthy negotiations with a purchaser, who is just tyre kicking.

The process may also be valuable if you have made the decision that you just need to move on with your life and attaining the highest price is not your priority.

There can be disadvantages too, mainly when it comes to unexpected costs. Did you know that at an auction the vendor usually pays the advertising costs up front? This makes auctions a popular mode of sale for the real estate agents as it passes the costs and risks of marketing back to the Vendor.

On top of advertising there are additional legal costs that you may not be aware of. Every auction has sale conditions that set the terms of the sale. The Real Estate Agency will forward the sale conditions to your lawyer for their approval.

It is important that your lawyer checks these because they set out the deal you are going to have to live with if the property sells at auction. Many people are unaware of the importance of the sale conditions, or the necessity and cost of having them reviewed.

As with most things in life – auctions aren't as exciting in real life as they look on TV. Even if you feel under pressure to give an auction a try, keep control of the sale of your property, it might be too soon to auction the ranch.

Have any more questions?

Contact reception@mackenzie-elvin.com