In this video,

I answer four important questions frequently asked about auction.

Number 1 — “But they don’t work, do they? They don’t seem to be selling this area. “You see the auction signs go up, then a few weeks later come down again and a “for sale” sign goes up.

Yes this happens, depending on the market you’re in. Sales under the hammer can vary. But when you take the whole process over three stages, it has a higher success rate than a normal agency.

Number 2 — “Doesn’t it cost more to sell by auction? “Only in terms of paying a professional auctioneer and for any advertising that’s agreed on. The actual fees for selling are the same. You can run an auction on high-profile advertising or low-profile, just the same as any other listing. We’ll talk about advertising later in the series.

Number 3 — “If it doesn’t sell, haven’t we burnt our bridges? “No, you haven’t. Stage 3 is important and you’ll be well on your way to getting it right, using all the feedback we’ve got from the first two stages from the auction.

Number 4 — “But when I was looking to buy, I couldn’t go to auctions because I wasn’t cash.” “Doesn’t that mean we miss out on a whole lot of buyers?” No. With auction you’re going after cash buyers first and foremost, but you don’t lose other buyers. If you had seen a house you really loved, you would have gone to the auction and watched what happened. Or showed an interest.

So we get all the buyers. Then, if cash buyers don’t pick it up, we go after the other buyers that got houses for sale or need to arrange finance.

Detailed questions, such as how long an agent wants your home for or exactly how much advertising is going to be, should be covered in the outline of the plan you and your agent will put together at the start.