It creates competition
Auctions can create a competitive bidding environment. Interested buyers might stretch themselves in competitive environments to purchase their dream home. In fact, this can be the biggest driver in achieving your premium price. Remember: competition fuels emotion.
Related: How to bid at an auction
Vendors are protected by the reserved price
The vendor sets the reserve price with the agent prior to the auction and you don’t have to sell unless the reserve is met or you’re happy with the highest bid.
Once the hammer folds, the buyer is bound to an unconditional contract and an immediate exchange will take place. The auction method is one of the most transparent ways to sell real estate. Buyers can see exactly who they’re competing against and vendors can witness firsthand what the market is prepared to pay for their property.
For more real estate video tips, head on to our Youtube channel.