There are 3 critical questions to be asked?
EQUITY – The price and actual property value need to be higher than the outstanding bond amount in order for the property to have equity!
Calculating equity is simple: You take the market value of the home and subtract any outstanding home loans.
MOTIVATION - How serious is the seller. What are the circumstances of the sale i.e. down scaling, emigrating, unique property, deceased estate, distressed circumstances, relocating?
The Private Treaty Auction Method is best suited to serious sellers who most often have one of the following reasons for wanting to auction their property:
THE 5 “D’s” – DESPERATE, DIVORCE, DOLLARS, DATE, DEATH!
Financial Decision: High carrying costs on the property, bond repayment, other loans to pay.
Purchased another property: needs to sell quickly
Retiring or down scaling
Illness / Deceased
Transferred for business and needs to move quickly
Divorce
Liquidation of company held asset
Difficulty in selling
COMMITMENT - The sellers need to be committed to a financial contribution towards the marketing and auction process.
BENEFITS FOR SELLERS TO SELL ON AUCTION:
- No commission - the buyer pays commission
- Quickest and most conclusive way of selling as a set date of sale encourages potential buyers to act quickly
- Reduced holding costs - The swift nature of the auction reduces holding costs such as mortgage payments, maintenance and repairs, taxes, insurance.
- Guaranteed Sale – At an auction, your home is generally not sold ‘subject to conditions’.
- Qualified buyers – we ensure all our buyers have legitimate approved finance before they are able to bid at an auction.
- Quality preview days- all preview days will be attended to by trained associate agents who will know your property, assist with buyer’s registration and pre-qualification as well as assist with explaining the private treaty auction process.
- Full buyer’s lists are recorded and presented to you after each preview day along with the buyer’s feedback. Limited preview days ensure high attendance which stimulates interest.
- Maximum property exposure through high profile marketing –
- There is no price barrier.
BENEFITS FOR THE BUYER TO BUY ON AUCTION:
- Buyers pay what they believe is the true value for a property – there is no price barrier and both buyer and seller achieve realistic results.
- Pricing transparency - Seeing other bidders willing to pay a similar price reassures a buyer they are not paying too much.
- Equal opportunity - Everyone has an equal chance of success at a Private Treaty Auction, it isn’t a first come, first served arrangement as in a traditional private treaty transaction.
- Financing - Yellow Hammer offers specialist advise and financing options through our preferred finance and mortgage partners.
- Motivated seller - The auction format does not suit those just testing the market, so buyers know our sellers are serious about selling.
- No negotiating - An auction virtually eliminates lengthy, stressful negotiations with the seller.
- It is the fastest way to buy
- Certainty of sale