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Auction Might Not Be The Safest Way to Sell House in Auckland

Auction Might Not Be The Safest Way to Sell House in Auckland

Dan 1 Mar
Selling House at Auction

Selling A House? Auctions Falling Out Of Favor

The property market in Auckland seems to be slowing down, although Auckland’s largest real estate cleared 49 units at Auction in one week. However, even with such impressive statistics, selling property through auctions might not be the best alternative for most owners.

Investment property buyers are still required to come up with a 40% deposit up front before buying property in the city. There’s a very big disconnection between the market prices and what buyers are willing to pay according to a large body of property statistics.

In February last year, most auction houses recorded clearance rates well over the 40 percent mark achieved by Barfoot & Thompson this year. Overseas investors from China who contributed to most of the sales during the last few years are also moving out of the marketing making it even harder to sell property through auctions at a reasonable price.

Auction House Sales Lack Of Cash Chines Buyers

The government is to blame partly because of its recent Capital Flight Restrictions. Without these foreign investors, the demand for property is at an all-time low, and the trend can be expected to continue well in summer as the Chinese government follows up on its citizens with offshore investments. That coupled with the fact that selling through auctions can attract marketing fees to the tune of $5,000, a lot of buyers are choosing to use alternatives.

With Auckland House buyers getting access to services that charge almost next to nothing, auctions are expected to dry up in the near future. There are lots of property listings going around, and the buyer’s market cannot soak up these listings fast enough.

Why Selling House at Auckland Is Not The Best Option Toady

The end result is selling through auctions takes a lot of time, and at the same time, it eats into the seller’s profit margin. With alternatives like Auckland House Buyer services, it’s quite easy to do away with the exorbitant commissions and auction fees and time it takes to sell a house.

In fact, using these tools is the fastest way to sell property in Auckland and with good reason too.

Many buyers are already held up by the 40% deposit requirement without the auctioned houses throwing in extra Commission and fees which been added to the asking price. That means acquiring property through non-action channels might be the best solution for buyers looking for a reasonably prices piece of Real Estate.

You want to take advantage of these circumstances by placing your Auckland property in non-auction listings because you know more potential buyers follow these listings compared to buyers using auctions. Furthermore, you are more likely to make a sale with private house buyers like Best House buyers compared to auctions for the simple reason that auctions tend to be out of favor.

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