There are various factors in real estate that can’t be controlled, such as interest rates, availability, the economy and property values. At Harcourts Milestone Advisors, we put some of that control back into our clients’ hands by offering the option to sell or buy through auction. In this blog, we’ll share what differentiates our auctions from the rest as well as five key benefits to selling and buying at auction.
What’s Different About Auctions Through Harcourts Milestone Advisors?
Harcourts is regarded as the oldest and most experienced auction company in the world with non-distressed real estate auctions conducted since 1888. From small properties to investment properties and luxury real estate worth millions of dollars, the Harcourts Auction platform offers a track record of success for both sellers and buyers . That’s because Auctions offer fair opportunity, complete transparency and an exciting, competitive environment conducted through live streaming and real-time bidding via the Harcourts Auctions app, allowing future buyers to bid on the phone, computer or through an auction representative.
Through this system, a live real estate auctioneer facilitates and runs the auction to create a transparent, energizing environment. “Our auctions give sellers the opportunity to potentially make more on the sale of their property, so it’s an option we love to provide. When our clients buy through auction, they have the ability to start at a lower price and participate as long as they want to,” Harcourts Milestone Advisor Kara Welliver shares. With your newfound understanding of what the Harcourts Milestone Advisors auction platform is, here are the top 10 reasons to consider selling and buying at auction, right now.
Five Benefits of Selling at Auction:
Bridge Transitioning Market Conditions: In the dynamic world of real estate, we’re constantly helping sellers navigate market transitions and find the best way to sell their property. With changes in housing prices and demand, auctions can help determine the true market value of a property and attract buyer attention. “At a time where there may be fewer buyers in the market, auctions are a great opportunity for clients to expose their home to increased demand,” Kara explains.
Defy Market Perceptions: Harcourts Milestone Auctions challenge the narrative of a declining market. Some sellers become anchored in prices from previous years and want to start there. The problem with starting at your desired price range is that it’s challenging to go up from there. With our auction approach, our clients often achieve prices that are in line with and even exceed their expectations. “With auctions, you’re not limiting your property potential,” Kara says. “Instead of putting out your desired price and having people hover around it, starting lower can attract a greater number of buyers and encourage them to go up in the auction’s competitive bidding situation.” This dynamic pricing strategy ensures no money is left on the table.
Set Your Desired Timeline: In real estate, no two sales will be exactly the same because our clients have different goals and needs. In line with this, not all of our clients are interested in selling on the same timeline. Some people may be looking to sell in two months, six months or even a year, while others may be looking to expedite the process as much as possible. “By being dialed in on our clients’ needs and the Harcourts Auction process, it’s possible for us to have a seller set up and running within one to weeks of speaking with them,” Kara shares. “It all comes down to scheduling, which includes all inspections and photos. To an extent, we are bound by when those can be scheduled, however, we work with enough providers that we have the ability to get things done quickly.”
Increase Engagement and Visibility: Known for auctioning top-tier, non-distressed properties, the Harcourts Auction platform is well-respected in the real estate community and known for capturing attention of qualified buyers. Zillow reports show that listings through Harcourts Auctions receive substantially more engagement than traditional listings with 51% more buyers attending auction open houses than traditional ones. To top that off, 90% of buyers look at auction listings before traditional listings. Between the increased engagement and visibility, auction properties receive an average 5-8% more than what a multiple offer situation on a traditional sale generates, according to Harcourts data.
Remain in Complete Control: When beginning the auction process, the seller meets with a Harcourts Milestone Advisor and the auction team to determine a reserve price together. The reserve price is a minimum price that the seller would take for their property at auction. “The reserve is the minimum price that we are all trying to work toward and it’s non-disclosed to buyers or buyers’ agents. Even if the reserve is met, sellers still determine whether they want to sell or not. The seller is always in control,” Kara says. Auctions are an opportunity for sellers to gain information about their property, meet or exceed their price and expectations and, ultimately, decide for themselves whether a sale is the right choice for them or not.
Five Benefits of Buying at Auction:
Receive Information Upfront: Auction properties are sold on an “as is” basis with all inspections, reports and disclosures completed upfront so everything is available to a buyer via a property information package. With auctions, the seller completes comprehensive property disclosures in advance and makes it accessible to buyers, unlike in traditional real estate where all reports and disclosures are completed by the buyer in escrow. On the buyer’s end, the purchase agreement that’s signed at auction is not subject to any contingencies. This often leads to less competition for the purchase of a property than the traditional method, because some buyers aren’t prepared to complete their due diligence or are unable to purchase without the inclusion of a finance contingency.
Start at Price You’re Comfortable With: When you find an auction property at a price that catches your eye, you have the opportunity to put in a bid that you’re comfortable with without having to worry that it will be countered or rejected by the seller. “Auctions can be perfect for the buyer who likes to start low with the option to go higher, because it doesn’t get them disqualified in the beginning. Buyers can also submit offers prior to auction, as well as after auction if the property does not sell,” Kara shares. Lastly, Harcourts Auctions do not charge a buyer premium, unlike companies that charge 5-10% to buyers at purchase. This means the buyer does not have to account for additional charges in their purchase price.
See What Others are Bidding: At auction, all bids are done in a transparent environment and you can see what others are bidding in real time. Gone is the uncertainty of waiting through a long negotiation period, trying to guess how much money it will take to be the highest bid or wondering if your offer will be accepted. This also allows you to continuously bid based on how much you’re willing to pay. With traditional real estate purchases, buyers often submit an offer on a property and don’t receive a response back or chance to counter. In these cases, they find out the property is in escrow online and would often be willing to pay the property’s sale price, but never got the opportunity to do so. “With auction, the buyer is in control of how much they will actually pay and not what the seller counters,” Kara says.
Stay in the Auction as Long as You Want: We often hear clients say that they don’t want to get into a bidding war over a property. In today’s marketplace, however, there is a very low chance for someone to be an isolated buyer on a property. “It’s very rare that buyers put an offer in and get accepted without there being five or more other offers submitted,” Kara says. With Harcourts Auctions, you’re in control of your bids and can continue to bid as long as you want. From this perspective, there’s really no reason not to participate in an auction.
Receive a Defined Timeframe: One of the biggest benefits of buying at auction is that you know the closing date beforehand. This eliminates some of the uncertainty behind a real estate purchase, whether it’s a primary residence, investment property or commercial property.
There are benefits to Harcourts Auction, both from a seller and buyer perspective, and we’re here to ensure that you’re aware of all your options when it comes to your real estate journey. This is just one aspect of our client-centered experience and we’re always available to answer any additional questions you may have about Harcourts Auctions. We’re a phone call or email away to provide our assistance – contact us today to get started!