Pros and Cons of Selling Property with Auctions

Pros and Cons of Selling Property with Auctions

The Pros and Cons of Selling Your Property via an Auction

If you are thinking about selling your real estate by auction but wonder if it is the right move for you, consider the pros and cons to make an informed decision. As selling your property via auction is not the most travelled route by home sellers there will be many questions that arise along the way.

The Pros of Selling Your Property through an Auction

Often times, a sale is contingent upon repairs or modifications to the home that are requested by the buyer. When you are selling your property through an auction the properties are sold as-is so you do not have to worry about putting more money into the property in order to sell it.
Selling your home through an auction will also allow you to save decorating or staging costs associated with open-houses or listing your property by traditional means. Depending on how long your property sits on the market will contribute to increased upkeep costs as well, maintaining the lawn, etc.
A great benefit for many home sellers looking to unload their property through a home auction is that you set the price you will accept. There will be bidding in auctions but ultimately you will determine the lowest offer you are willing to accept.
There are no Realtor fees or closing costs associated with selling your home via an auction. Though there will be auctioneer fees. Another pro would be quicker turnaround of your property, no waiting on buyers to come knocking on the door.

The Cons of Selling Your Property through an Auction

When selling your home through an auction there are auctioneer fees assessed for the auction service and can often times be more expensive than using a Realtor. For example, if the property doesn’t sell during the auction the seller is still responsible for the auctioneer’s advertising expenses and any fees associated with the auction. This isn’t the case when using a Realtor. They only earn a commission upon the closing of the sale.
Locating a skilled auctioneer can also create unnecessary problems when it comes to selling your home. There is a possibility you could walk away with less because the auctioneer is not capable of enticing buyers to increase their bid.
One last thing to consider when selling your home through an auction is the turnaround time. While it is considered a benefit to sell the home in a quicker time frame, you must also take into consideration that if the home sells during auction you will typically have to vacate the home within 28 days.

Tips: Choosing your new neighbourhood

Tips: Choosing your new neighbourhood

Choosing where you want to live is no easy feat. There are so many things to consider, including price range, local amenities and location. Moving suburbs can be a daunting experience. How will you know if you like the neighbourhood? Is there a nearby park for summertime BBQs? How are the local schools? All these factors are easy to address if you know the area, but it can be a leap of faith for someone who hasn’t lived there before. Consider these few tips if you are planning on switching suburbs.

 

Scope out what else is on the market

 

Looking for a new house can be hard enough, and we tend to become tunnel visioned when property hunting. But if you have a street or neighbourhood in mind then consider flicking through what else is available in the area. If there are an abundance of super cheap rentals nearby then this could be a warning sign for a high turnover of neighbours. Alternatively, houses close by that need renovations could signal months of loud building noises.

 

Do regular drive throughs

 

School drop-off and pick-up times, rush hour, late night parties, loud nearby venues… If you swing by your potential new street and property at different times throughout the day and night, you will have a better understanding of traffic and noise levels around your new home.

 

Attention to detail

 

Do your neighbours look after their gardens? Are there skidmarks on the roads from hooning? Are there lots of cars parked on the road? Looking for subtle clues like these can save yourself a headache in the long term.

 

Listen to family and friends

 

People who know the area will be able to give you their honest opinion about it. Ask family and friends who live there what the suburb is like on the whole. Even better if you prompt them with specific questions you would like answering such as schools and shops.

 

Talk to your Marshall SA agent
We know Adelaide, and can make suggestions based on your needs as our client. Talk through your concerns with us and gain a clearer perspective of your new suburb.

City vs the Burbs?

City vs the Burbs?

The city or the suburbs? It’s one of the most common questions we are asked as real estate agents by potential investment property owners. Adelaide is blessed with sprawling suburbs that boast ample properties at affordable prices, but now the city is booming with construction of apartments that attract professional renters. So if you’re looking to purchase an investment property in Adelaide, here’s some food for thought about where might be best for you to buy.

Investment properties can serve two purposes; for you to live in yourself until the time comes to sell up, or to rent out. When deciding where you want to purchase a house, unit or apartment, it’s important to decide what your intentions with the property are. If you want to live in your investment property does the suburbs or the Adelaide CBD appeal more to you? Do you have a family and need an ample sized home that you can sell once the kids have flown the nest? Then consider the suburbs, as larger houses with gardens are easier to come by. Or maybe you are a young professional and wish to live in an investment property close to the city. Personal circumstances play into investment property searching and should not be ignored when weighing up whether the city or the suburbs suits your lifestyle.

However, if you are planning on purchasing a property to lease out, then there are a few other things you may wish to consider, depending on your price range. The demand for properties in some suburbs has slowed greatly, and are no longer attracting the prices that they were three to four years ago. This is great news if you wish to buy a house at a cheap price, but then consider that you may have difficulty in leasing the house out, or may not get the return you were expecting from rent. This is not the case everywhere, and your real estate agent will be able to advise you more in depth about particular Adelaide suburbs. However, this housing price slump in the suburbs cannot last forever, so you may reap the rewards when the time comes to sell your investment property as house prices start to increase again.

Meanwhile in the Adelaide CBD, new apartments springing up along nearly every major road. These investment properties are abundant, and there are some great incentives for buyers including stamp duty reductions. City apartments attract many different kinds of renters, and are often sought after, but with such a surge of new properties flooding the market, it may have an impact on the rent price you can ask for. Of course, there will always be new apartments being built in the city, but the price reduction incentives will not always be around.

When looking for an investment property, there are so many considerations that come in to play. Your real estate agent can help you weigh up your circumstances to find an investment property that works for you.