Mortgage brokers don’t often talk about selling properties and here’s an example of why it’s relevant to us. If you are moving to Kwinana but currently live in Perth, you will probably be selling your old home. Many of our transactions involve trying to make the timing work, with the ideal being simultaneous closings that allow you to move from one home to another on the same day but that isn’t always possible.
Sometimes, it can be difficult to sell your old home for the amount of money you want and as fast as you want. According to capital cities data compiled by CoreLogic RP Data, auctioning your home may be the best way to maximise your returns. Over the twelve month through November 2015, the median selling price of a home sold in the capital cities was “around $950,000.” The median price of homes sold by private treaty was $530,000.
Are we saying that an auction will turn your $530,000 home into a $950,000 home? Of course not. However, there are times an auction may be the right choice for you.
When to Auction
Opinions vary. Haesley Cush, a columnist for News Corp and an Auctioneer for Ray White Real Estate, feels that every property should be auctioned because it “allows buyers and potential buyers to judge property…without price involved.” Buyer’s agent and market analyst Simon Pressley of Propertyology advocates auctioning for two reasons: a strong market or a home that has “niche” features which would make it sell for more money.
Tips for Auctioning Your Property
If you like this idea, here’s a great way to go about it. First, do your homework. Attend a few auctions to get familiar with the process and results. Then research the market value of your property. When it goes for auction, use an agent who is experienced in auctions. Also, make sure you set a realistic “reserve price.”
Call One of the Mortgage Brokers at Smartline Rockingham
To learn more, call us today: (08) 9527 1800.