How do Auctions work when selling a Gold Coast Property?
Selling a property via auction on the Gold Coast is a structured, fast-paced process where buyers bid publicly on a set date, often resulting in a sale on the same day.
This method creates a sense of urgency and competition, which can drive up the final price. It also offers transparency and a clear indication of market value. Working with an experienced agent and auctioneer is key to achieving the best result.
Here’s how the auction process works when selling property on the Gold Coast in Queensland, Australia:
Increased Buyer Engagement
Auctions often attract motivated buyers who are actively researching properties. These buyers tend to be well-informed and serious about the purchase, resulting in increased engagement and interest in the property.
The competitive nature of auctions creates an atmosphere of urgency and excitement, encouraging buyers to actively participate and bid, which can result in a lively bidding environment and potentially higher sale prices.
Transparency
Auctions provide a high degree of transparency as to the value of the property as determined by the market. Bidders compete openly and each bid is visible to all participants, helping to establish a clear and fair market value for the property.
This openness reassures both buyers and sellers of the transaction’s legitimacy and the property’s true value, based on current market demand.
Timeframe
Auctions operate within a fixed timeframe, typically a few weeks from announcement to auction day. This limited time period creates a sense of urgency for potential buyers, forcing them to make quick decisions.
The fixed timeframe ensures a quick resolution, which is particularly attractive to sellers who want to expedite the sale process and move forward with their plans.
Conditional vs. Unconditional Sales
Properties sold at auction can be offered with various conditions attached. An unconditional sale means that the buyer agrees to purchase the property ‘as is’, with no contingencies.
A conditional sale, on the other hand, typically includes specific requirements that must be met before the transaction is completed, such as obtaining financing approval or passing satisfactory inspections. This flexibility allows vendors to choose the terms that best suit their needs and circumstances.
Reserve Price
Sellers typically set a reserve price before the auction, which is the minimum amount they are willing to accept for the property. The auctioneer will only declare the property sold if the highest bid meets or exceeds this reserve price.
This ensures that the seller is protected from underselling their property and provides a safety net in case the bidding does not reach the expected level.
Competition
The competitive atmosphere of an auction can create a bidding war where multiple buyers continually outbid each other. This heightened competition often drives the final sale price higher than expected, to the seller’s benefit.
The sense of urgency and desire to win can lead buyers to exceed their initial budget, resulting in a more favourable outcome for the property owner.
Buyer Prequalification
Prospective buyers are usually required to pre-qualify or provide proof of funds before participating in an auction. This step ensures that all bidders are serious and financially capable of completing the purchase.
By pre-screening participants, sellers can avoid wasting time on unqualified buyers and increase the likelihood of a successful transaction.
Emotional Investment
Auctions can elicit strong emotional investment from buyers. The competitive and fast-paced nature of bidding can lead participants to become emotionally invested in the prospect of winning the property.
This heightened emotional state can lead buyers to bid more than they originally intended, driving up the final sale price and benefiting the seller.
Marketing Impact
Auctions generate significant awareness and interest, potentially attracting a wider pool of buyers. The auction event itself, combined with targeted marketing efforts, creates a buzz around the property.
This increased exposure can be particularly beneficial for unique or high-value properties, ensuring they receive the attention they deserve and reach a wider audience.
Speed of Sale
One of the key benefits of auctions is the potential for a quick sale. The auction process is designed to be quick and decisive, often culminating in a sale on the day of the auction.
This is ideal for sellers who need to sell their property quickly, whether due to financial reasons, relocation, or other personal circumstances.
Professional Guidance
Working with an experienced auctioneer and real estate agent is crucial to a successful auction. These professionals will provide valuable guidance throughout the process, from setting a realistic reserve price to developing a compelling marketing strategy.
Their expertise will ensure that the auction runs smoothly and that the property is presented in the best possible light to attract maximum interest and bids.
Post-Auction Negotiations
If the property doesn’t meet the reserve price or doesn’t sell at auction, negotiations can continue with interested buyers who attended the auction.
This follow-up opportunity allows sellers to engage with serious buyers who have already expressed interest, potentially leading to a successful sale even after the auction has closed.
THIS IS HOW YOUR JOURNEY TO A SUCCESSFUL GOLD COAST PROPERTY SALE STARTS
My simplified guide below will take you through a 20-step process for selling your property anywhere on the Gold Coast;
I proudly sell homes across the entire coast.
1. PREPARING YOUR GOLD COAST PROPERTY FOR SALE + SOME OF THE LEGAL REQUIREMENTS
- Tidying gardens and decluttering everything inside and out.
- All homes for sale, are legally required to have hardwired photoelectric, interconnected smoke alarms.
Non-removable 10-year battery smoke alarms can be installed as an alternative.
- By law, you are required to complete a pre-contractual seller’s disclosure statement: generally related to limitations, restraints, or defects in the property title, such as easements, covenants, leasing, zoning, etc.
- A pool safety certificate is also required if you have a swimming pool or if the property has a shared swimming pool (Body Corporate).
2. COMPARATIVE MARKET ANALYSIS REPORT FOR YOUR GOLD COAST PROPERTY
After showing me around your property, I will provide you with a Comparative Market Analysis (CMA) report. This is a detailed, legally required analysis of your home’s market value.
The CMA is based on recently sold and for-sale properties similar to yours in the immediate area. I will need to view your home to prepare this report.
3. SETTING A MARKETING BUDGET FOR YOUR GOLD COAST HOME
The third step in selling your home is to create a marketing budget.
By law, this must be based on actual costs.
There are various marketing options to consider, such as:
– Internal, External and Drone Photography.
– Property and House Plans show potential buyers the exact layout of your home and property.
– Internet Advertising on platforms such as RealEstate.com.au, Domain.com.au, Facebook.com, Instagram.com, etc.
– For Sale Sign on the street is still essential to attracting potential buyers. Even though many buyers start their search online, they often drive around neighbourhoods to see what’s available.
A simple fact: Not having a For Sale sign can significantly reduce the number of people who see your property and may be interested in buying it.
4. PREPARING AND APPROVING THE FORM 6 AGREEMENT WHEN SELLING A GOLD COAST PROPERTY
A Form 6 Agreement is a document provided by the Queensland State Government. It outlines all relevant details of the property sale, including the marketing budget.
Our administration team will prepare this form for you and send it for your review and approval.
5. PAYING THE MARKETING BUDGET FOR YOUR GOLD COAST PROPERTY
Once you have approved the Form 6 Agreement, the next step is to pay for the marketing budget that you have chosen.
6. STARTING THE ADVERTISING PROCESS
Once your payment is received, the advertising campaign will commence.
Advertising strategies will align with the choices you made within your marketing budget.
7. MONITORING MARKET RESPONSE
If your property hasn’t received offers within 30 days, don’t assume there’s no interest.
It often means the price isn’t aligned with what buyers are willing to pay at this time.
This is your signal to review and adjust your pricing strategy so your home remains competitive and receives the attention it deserves.
8. ARRANGING BUYER VIEWINGS
When buyers express interest in your property, viewings will be arranged to allow them to see your home in person; you need to be away from the property during these viewings.
This helps potential buyers feel relaxed and visualise themselves as the new owners, thereby forming a deeper connection with your property.
9. CONSIDERING A BUYER’S OFFER
When you receive an offer on your home, it means a buyer is serious and ready to move forward at a certain price.
This is a key moment in your selling journey. Take the time to go over the offer carefully.
Look beyond the price; check the terms, conditions, and settlement timeframes. Make sure it works for you before accepting, countering, or declining.
10. ACCEPT, COUNTER, REJECT
When an offer is presented, you will need to respond by accepting, countering, or rejecting it.
Accepting locks in the agreed-upon price and terms.
Countering proposes changes and initiates further negotiations. If countering, present revised terms clearly; open, respectful communication is key for a smooth sale.
Rejecting means the offer is unacceptable; in this case, respond promptly and professionally, explaining your reasoning for the decision.
11. YOUR LEGALITIES
When you finally accept an offer, you will engage your conveyancer or solicitor to facilitate the legal requirements to complete the sale.
If you are part of a Body Corporate, you will need to provide a Disclosure Statement from them.
Your solicitor will use PEXA to settle your property. Part of the process requires Verification of Identity. Also, anyone selling a property must complete an ATO Clearance Certificate.
12. BUYER’S DEPOSIT
The buyer’s deposit is a crucial step in the property purchase process; it will be held in the agency’s Trust account.
This is a tangible expression of the buyer’s commitment to purchase your property.
13. BUILDING AND PEST INSPECTIONS
Typically, a buyer will arrange for a building and pest inspection report to be completed, usually within 14 days of the contract date.
Additionally, they may have the contract subject to finance, which is generally applicable for 21 days from the contract date.
14. COMPLETING YOUR GOLD COAST PROPERTY SALE
Based on the outcome of the building and pest inspection report, as well as any finance being sought, the buyer will proceed with their offer or withdraw it.
At this point, the sale either falls through or becomes unconditional.
15. LOOKING FOR YOUR NEW PROPERTY
If the sale becomes unconditional, it is time to start looking for a new property. Remember, there is no need to rush.
It is essential that you take your time, as this needs to be a very considered purchase.
Your new home is of substantial value and can be costly if you change your mind. Something you may want to investigate is Short-Term Bridging Loans.
16. ALTERNATIVES YOU SHOULD CONSIDER
An alternative to seriously consider when deciding where to live between selling and buying is renting while you look for a new property.
Renting for a short period gives you breathing room; it allows you time to clear your head, make a confident, considered decision, and ultimately buy where you truly want to live, with no pressure or panic.
17. TIME FOR YOU TO MOVE
Leaving your home opens doors to a new chapter full of new beginnings. Embrace the excitement of a fresh start and cherish the memories you’ve made.
Every box you pack brings you one step closer to a new adventure full of possibilities that lie ahead.
18. YOUR SALE CONCLUDES
The culmination of the property sale is settlement; it marks the transfer of the property to the new buyer.
As the final chapter concludes, this marks a sense of achievement: your property has now SOLD.
19. YOUR FUTURE OPTIONS
If you have chosen to rent, you will continue to look for and eventually purchase a property, apartment, or perhaps even buy land and build; now there’s something to consider.
20. TIME TO UNWIND AND MAKE YOUR NEW HOME YOUR OWN
As you unpack and furnish your new home, embrace the gradual process of creating your haven.
Enjoy the transformation, one room at a time.
Relax in the tranquillity of your surroundings and immerse yourself in the gentle sounds of your new neighbourhood.
Explore the nearby parks and cafes; enjoy the unique charm of your new community.
Remember, settling in is a journey in itself; it’s not a race. Embrace the process of creating a home that reflects your unique style and personality.
Whether you’re downsizing, relocating or just ready to move on, I’ll guide you through every step of selling your Gold Coast home with confidence and ease.
Navigating the intricacies of selling your property can be complex, but it doesn’t have to be.
My 20-step guide provides a simplified general overview; as you would naturally expect, your steps may vary.
Author – Craig Douglas
Are you ready for a conversation about selling your Gold Coast home?
Let’s get you Selling
LET’S GET YOU SOLD
Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
You can find me working at a Boutique Real Estate Agency
These are just some of the suburbs that I proudly sell homes in:
Nobby Beach
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
