Home – De Freitas & Ryan

Auction

When the time comes to sell your property you’ll need to consider which method of sale is best suited to your desired outcome. Selling a property by auction has not been a preferred option in many parts of Perth over the years, however with the favourable changing market conditions taking your property to market may now result in a selling price which far exceeds expectations.

It’s common to hear of properties that sold on the first Home Open leaving many eager buyers disappointed. Instead we believe these properties should have been put up for competition between the many motivated buyers, resulting in a clear cut, unconditional cash sale at the maximum price.

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The Benefits of Selling at Auction.

Committed
Deadline.

Once the date has been scheduled for the auction, the ball is in the buyers’ court and up to them to prepare to enter a competitive bid. Having a concrete auction date in place quite often also encourages buyers to present their best offer prior to auction day in order to avoid a competitive bidding war. In short, the pressure to perform is solely on the buyer, which is very beneficial to the seller.

Healthy
Competition.

A Public Auction provides a true and totally transparent indication of the market value of the property with the auction allowing prospective purchasers to compete for the property in a public forum. Through the skill of the Auctioneer, your auction should result in a price that may by far exceed expectations. The friendly competition instils confidence in your buyer that they are bidding for a valuable property as they can see other bidders doing the same. Auctions have been conducted in all forms for centuries and the same basics always remain. If you possess an item of worth, let competition decide the real underlying value.

Set Time Frame (Minimum Disruption).

At De Freitas Ryan we opt for a five-week auction campaign allowing for the first week as a ‘forthcoming auction’ week. This allows us the opportunity to set all of our premium marketing  in place. Then we progress into a solid four-week campaign with set ‘open for inspection’ times so that you, the seller, can work around allocated time frames. This is different from a drawn out private sale campaign, which can see the seller preparing the home for inspections for months, without a set deadline in sight.

Reserve Price.

Prior to the auction, the seller in consultation with the agent can set a reserve price meaning the lowest price that the seller is willing to accept for their property. This keeps the seller in control of their sales process and provides great peace of mind if for some reason or another, the bidding was to fall short of expectations. A reserve price must never be disclosed to the public or anyone else other than the auctioneer and your sales representative.

Unconditional Contract.

Once the sales contract has been signed, it will be totally unconditional and legally binding. The sale will not be subject to finance approval, building checks or legal queries. Yes, you can pack your bags and be on your way to life at your new address!

Choosing an Auctioneer.

An Auctioneer can be the real difference in maximising the result of the auction, so it is vital that they are at the top of their game. Experience, knowledge and expertise are vital ingredients to ensure you, the seller, is in the best hands to obtain the best possible result. An experienced Auctioneer will build excitement about the property and create a theatrical like atmosphere that engages the crowd before the bidding even begins. They will also encourage buyers to bid beyond the anticipated price, which is the ultimate outcome for the seller.
Our head Auctioneer, Rod Ryan, has conducted in excess of 2000 auctions across a Real Estate career spanning over 50 years in both Melbourne and Perth. Rod’s auction experience includes individual blocks of land, land subdivisions, retail shops, medical centres, factories, multi-million dollar homes, and more. You name it, Rod has auctioned it, and he is as keen today as he was back in 1970, at his first auction.
Rod would love the opportunity to sell your property at auction and is ready and waiting for your call! Contact Rod on 0408 405 262 to discuss your potential for an exciting auction experience.

Frequently Asked Questions.

A Real Estate Auction is a public sale of a property usually conducted by an Estate Agent and Licensed Auctioneer, at an advertised place, date and time. The process is governed by strict rules and a code of conduct.

Prospective buyers offer bids on a cash basis, with a settlement period of 30 or 60 days. The highest bidder accepted by the Auctioneer is offered the purchase of the property. They then sign a contract immediately after the “fall of the hammer” and once the seller also signs, the contracts are exchanged and the celebrations begin.

Competitive bidding can push the sale price well above asking price.

A set date deadline compels buyers to act quickly and doesn’t delay the process for sellers.
An efficient four week campaign period means less inconvenience to the sellers in regard to inspection times.

The contract signed is unconditional, meaning not pending any additional finance approvals, building checks or legal queries.

The lowest price which the seller is willing to accept for the sale of their property with the goal of an auction to get the property to a point where it is deemed ‘on the market’, i.e. reaching reserve price and then the fun begins! The reserve price also helps to keep the seller in control, as if the property fails to reach the required amount the seller is not obliged to sell and is able to negotiate the price afterwards.

In discussions with the agent, the seller decides on a price they would be happy to receive for their property. The reserve price is completely confidential between the seller and their agent. The price should be high enough that the seller is comfortable, but not so high as to deter competitive bidding.
If the bidding does not reach the sellers reserve price, the property may be ‘passed in’, that is, the highest bidder is then given the first right to negotiate with the agent (on the seller’s behalf). If a price is not agreed on, the agent can invite other bidders to then negotiate at the sale price.
In simple terms, one that the agent believes will attract strong interest and result in competitive bidding.
A vendor’s bid is not an actual bid, but one made by the Auctioneer on behalf of the seller to start the bidding, or further progress the bidding. It must be acknowledged by the Auctioneer that it is a vendor’s bid.