In this real estate vlog, Henry Wong looks at online auctions, and some of the reasons why they’re proving so popular with sellers. Here’s why to sell at an online auction.
“Welcome to another episode of Henry’s Thoughts. Before we start, please follow us at @thehenrywongteam for up-to-date advice on real estate and life.
Today, we’ll be talking about online auctions, but this time it’s from a seller’s perspective. The great thing is it provides certainty, number one, for buyers. You see, in this uncertain environment, people don’t really know is the price going to go up, is it going to go down? More than likely, it’s going to go down, 10, 20, 30%. Or is it going to be stable? Well, we don’t really know. With the auctions, you see, if a buyer is actually bidding at $900,000, and another buyer is putting their hand up at 950, all the other buyers can see that the second buyer is bidding at 950. There’s transparency over there. With a private treaty, you don’t actually know that. Actually, none of the buyers do. They don’t know what the other buyers are offering.
Number two. For you, yourself, as a seller, it provides certainty. Meaning that if it’s sold under the hammer, the buyer has 30 days, generally, with 5% deposit, to pay the money. In 30 days time, money goes into your bank account. You know it’s a done deal. With a private treaty, it may not be. Subject to finance, cooling-off period, building and pest. And sometimes you can have special conditions, like subject to sale of the home.
Number three. With the online auctions, we don’t really need to worry too much, per se, about social distancing. Meaning that if the buyer’s bidding in their own home, well, you don’t need to worry about them distancing with another buyer. Why? Because the other buyer’s in their own home as well. We actually remove that out of the equation.
Number four. You don’t need to worry about the weather. It doesn’t matter if it’s rain, hail, or shine. The auction will still carry forward. And the buyers aren’t going to go, “Hey, look, it’s raining too heavily now. It’s hailing, it’s dropping golf balls. I can’t drive, my car’s going to be a wreck.” You don’t need to worry about that at all, because they’re bidding, generally, from their own home.
There you have it. These are all the great points as to how this benefits you as a seller. If you have any other questions about why to sell at an online auction, feel free to contact us.”