With auctions becoming increasingly popular and clearance records exceeding expectations, there’s a high chance that your next property purchase may be at auction – but that’s not a bad thing.
Whilst auctions often get a bad rap, we spoke to Michael Virley of MVP Auctions to find out why they’re so popular and to share his secret for making the most out of your auction experience.
The Difference Between Auction and Private Sale
The main difference of an auction is that there is a time limit on selling negotiations. An auction is a sale held at a certain place, time and date, after a marketing period. For prospective buyers, this tends to create a sense of urgency – particularly if the property is in high demand.
Michael says “There is an overwhelming amount of evidence that concludes that auction is the fairest, cleanest and most transparent way to sell and buy real estate” and we would have to agree.
When a vendor has listed a property for sale, offers are given privately. As a prospective buyer, you will likely be unaware of what your competition is willing to pay or the terms that they have put forward (for example, waiving the cooling off period or agreeing to a faster settlement period).
At an auction, prospective buyers are fully aware of their competition and are given a fair opportunity to buy. Negotiations are open for all to see and you know you are dealing with a motivated vendor who is looking to sell on the day.
The Secret to Auctions
According to Michael, the secret to making the auction process work for you happens before the big day.
“On both sides of this equation, preparation is key, knowledge is power and the power of the auction process with a deadline creates urgency and action from all concerned; buyer, seller and agent.
As an auction company, we are all about education and knowledge. We want buyers to understand the process, have confidence and engage and the same is true for the owners.”
For the Vendor
MVP Auctions meets with vendors before auction day to “discuss the campaign, their objectives, goals and motivation; allowing owners the time to clarify their situation and also the potential outcomes on auction day.
“We meet all of our owners in a Vendor Meeting in the final week of the campaign. This increases confidence in the process and also clarifies some of the many misconceptions around auction day, preparing owners to make the right decision based on knowledge, market feedback and professional advice.”
For the Buyer
For MVP Auctions, it is also important that the buyers are also informed and knowledgeable about the auction process, the potential outcomes and advantages and strategy around buying at auction.
They proudly provide videos, seminars and guides to give the confidence to buyers to participate. Michael says that “Trust and confidence = results for all concerned”.
More From MVP Auctions
If you’d like to hear more from MVP Auctions, you can visit their website at http://mvpauctions.com.au/. There you will also find the videos and resources mentioned above.
Looking to purchase at auction soon? Get in touch and we’ll send you our tips for buying at auction.