Do I sell by auction or private sale? It is a key question and the answer will depend on how you and your apartment rate on the following questions.
– How special or unique is your apartment?
– How strong is the market for this apartment?
– How committed are you to present and market the apartment in the very best way?
– How realistic are you on the acceptable sale price?
– How comfortable are you with the theatre of auction day?
The higher you score in each question the greater the case for an auction. Your agent will advise you specifically but it’s worth a good discussion as it is an important issue.
An auction works best when several people compete and bid the price up to meet or exceed your reserve price. For this to happen you must have an apartment that is highly desirable, and a buoyant market (or the marketing power of a reality TV show!).
The natural process of an auction pushes the price up, but this assumes there are competing buyers who bid. A good agent will be able to create similar competitive tension in a private sale process by skillfully negotiating with genuine buyers.
The marketing cost for private sale vs auction are similar. An auction provides a focus point to extract serious buyer’s interest, but it can also disclose a lack of interest if only a few people turn up. Not all auctions are a guaranteed success and sometimes no one bids. Unfortunately, it does happen and it’s very public.
Discuss this in detail with your apartment agent and agree the best option.