When it comes to purchasing property, the auction room is not only an exhilarating place to secure your next home or investment, it can also be the best sale method in securing a good deal as a buyer. Despite popular belief, buying a home at auction is not just for the seasoned purchaser. Here we breakdown how it’s an accessible option for many buyers, with some little-known advantages.

Transparency

The most significant benefit of buying at auction is the level of transparency it offers. When you attend an auction, every bid is made publicly. This open format increases the trust in the process since you can see in real time who you are bidding against and what they are willing to pay, ensuring that all parties are on a level playing field.

Auctions provide an equal opportunity for all potential buyers to bid. Unlike private treaty sales, where the negotiation process can sometimes work in favour of those with more experience, everyone has a fair shot at success, and all bids are considered equally.

True Market Value

Auctions are often seen as a true test of the market value of a property. The competitive nature of bidding helps ensure that the price paid reflects the current market demand. By participating in an auction, buyers have a clearer indication that the price they pay is fair and reflective of the property's true worth in that moment. The value of the property is therefore determined openly.

Speed and Efficiency

The auction process is typically much quicker than traditional sale methods. When a property is sold at auction the sale is unconditional, with a pre-determined settlement date.

Once the hammer falls, you move straight to contract signing with no lengthy negotiations. This can be a significant advantage if you're eager to secure a property quickly.

The set auction date also gives buyers a timeline to work towards, to complete all their due diligence beforehand, making it a streamlined process.

Security and Peace of Mind

At an auction, once the hammer goes down, the sale is legally binding for both buyer and seller. This provides a huge relief and security to buyers, knowing that their purchase won't be jeopardised by a last-minute offer.

Excitement and Competition

The dynamic environment of an auction can work to a buyer's advantage. The competitive atmosphere can encourage buyers to make decisive offers, which can help close a sale on the spot that might have dragged out under different circumstances. Plus, the excitement of the auction can make the buying process more engaging and memorable.

Buying property at auction offers numerous benefits, from transparency to the assurance of securing a property at true market value. When you buy at auction through a reputable real estate company, you are not alone in the process. The EVES team provides expert advice and guidance throughout the entire auction experience.

For more information on EVES auctions visit https://www.eves.co.nz/auctions