Until very recently, Mosman property sellers were more often than not advised by their real estate agent to go ahead with an auction strategy. This was because of the high level of interest in local homes and the generous budgets of those bidding for them.
However, the COVID-19 outbreak has firmly placed a fly in the ointment. Auctions usually take place with a crowd present, bringing an exciting energy and sense of anticipation. With the shutdowns, hosting auctions onsite is temporarily not allowed.
If you had your heart set on a home auction in 2020, here are some options to look at.
Hold an online auction
At De Brennan Real Estate, we are now making use of online auctions. These platforms allow multiple purchasers to competitively bid in real time via a video connection.
Online auctions have been used by real estate agents for some time. They have opened home sales up to the world, allowing bidders to take part in auctions from hundreds of miles away.
The technology we use requests buyers to pre-register before logging on to view the online auction and place bids. An auctioneer will host the event and read out the conditions, just as with any other auction. And just as with a regular auction, the winning bid is final and the bidder is contracted to the sale straight away.
Online auctions have been taking places across Australia as real estate agents and their clients adjust to the new conditions. If you have a beautiful property which has been well marketed and has a lot of interest from buyers, the online environment should still result in a final bid you are excited to accept.
During COVID-19, you do have the option to postpone your auction, however be aware that buyers can sometimes become wary of houses which have been on the market for an extended period of time
If you’re not comfortable with an online auction, you can switch your strategy to private treaty. This involves your real estate agent taking offers from individual parties then helping you choose the one that will help you move forward.
Private treaty sales do involve a cooling-off period and the terms may be conditional, for example an extended settlement period or certain things included (or not included) with the purchase.
Open homes and COVID-19
Auctions are off-limits right now and so are public open homes, which has led some Mosman home owners to believe they can’t list and sell—but this is not the case.
It is still possible to have people view your home through private inspections. Your real estate agent can organise this, making sure social distancing and good hygiene rules are adhered to.
Private inspections can actually be a better option for Mosman home owners. Instead of your home being open to a crowd, your agent will only bring through qualified buyers. These people are purchase-ready and won’t be passing through simply for the opportunity to check out your home.
With the COVID-19 outbreak changing things rapidly, many buyers are motivated to secure a property sooner rather than later. They are willing to adapt to an online auction, a virtual viewing or a private treaty strategy in order to secure a home so they can plan their next steps.
For more information about holding an auction or planning a sales strategy during COVID-19, contact the team at De Brennan Property in Mosman.