A think piece by Graeme Trask
21st March 2010
It seems to me more people are selling their homes by auction — and they’re doing so in record numbers.
But with the present market uncertainty it means buyers are cautious in their approach when bidding, leaving many properties unsold at auction..
Market prices have been fluctuating, and buyers are uncertain about values and this makes them reluctant to commit themselves.
So putting a house up for auction can provide the best idea of a property’s value.
Real estate companies across the country report caution from buyers. But most of these people are looking for a home for themselves, rather than investors.
But even when not buying, house seekers are getting involved by attending auctions and getting a feel for the market.
On the other hand, investors are said to be jittery with tax laws which may change soon and they are staying out of the market.
My advice to buyers and sellers is:
You need to be realistic about what to expect when selling your property: It’s a buyer’s market; you may have to wait till a better time to sell to get the price you want.
An auction is a good way to test the market, but remember bidders are doing their homework and are being cautious and so prefer to negotiate.
If you don’t have a mortgage and have some spare cash then, go for it!
As I said before, it’s a buyer’s market and you can get a bargain. Do your homework, attend auctions and note what property is selling and the price it sells for.
Take particular interest in the area where you may be interested in buying; and in what sort of competition you may be up against.
By taking your time, you may get a bargain but, more importantly, you will know you haven’t paid too much!