08 Nov Property Auctions – Why Some Properties Go To Auction
Sydney property auctions had a bumper day on November 5th, 2023, with the highest number of properties going under the hammer since mid-April 2022. There are a variety of reasons that properties go to auction and not all of them are by choice. We list the top reasons vendors select property auctions as their method of sale.
Seller’s Preference
In some cases, the seller may have a strong preference for selling their property through an auction. They may believe it’s the best way to maximize the property’s value or expedite the sale process.
Market Conditions
The current state of the real estate market can influence the decision to auction a property. In a seller’s market with high demand, sellers may opt for auctions to capitalize on competitive bidding.
Mortgagee Sales
When a property is being sold due to mortgage default, it may be sold through auction to expedite the process and recoup the lender’s investment quickly.
Deceased Estates
Properties from deceased estates are often sold at auction to transparently and efficiently distribute the assets among beneficiaries.
Stale Listings
Properties that have been on the market for an extended period without selling may be switched to an auction campaign to set a clear date for completion and reinvigorate buyer interest.
Divorce or Legal Settlements
In cases of divorce or legal settlements, properties may be auctioned to achieve a transparent resolution.
Timing Constraints
If the seller has a specific timeframe in which they need to sell, an auction can be a more structured and time-bound process compared to private treaty sales.
Local Market Norms
Regional variations in real estate practices can also influence the decision. In some areas, auctions are the standard method of sale.
If you are looking to purchase a property via a property auction, read our helpful article on auction strategies and smart due diligence to ensure a successful purchase or contact us directly and we can represent you at auction.