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Why Hire an Auctioneer?

Hiring an auctioneer works out as an unparalleled investment when you’re looking to sell your home in a busy and in-demand market.

 
hashching_How_much_does_an_auctioneer_cost - selling your house
 

When a large group of buyers arrive at your home for auction day the auctioneer will undoubtedly create a great atmosphere and get the buyers excited. By doing this, buyers have a sense of urgency and will be looking to do their best to push through with a winning bid — typically by using an auctioneer you can see buyers pushing sale prices up by more than $100,000 in some cities, like in Sydney.

 

Cost Breakdown

There are a few various costs that come from using an auctioneer to sell your home with the largest being the fees that the auctioneer will charge you for using their experience and services to sell your home. Typically this can be anywhere from $400 to a few thousand, or a percentage of your home’s price. Although, it isn’t accurate to assume or plan for a price of your auctioneer until you speak with them and get a quote directly based on your home and the sale process. You may also need to factor in the price of a venue if your auction isn’t being held at your home.

A few different costs outlined below are required to make sure the auction works properly, as more advertising and market research is required to make sure it all runs properly.
Other costs you’ll need to make sure to factor in are things that are simply required to ensure your entire sale process runs smoothly, and these often don’t involve the auctioneer at all.

To make sure your auction works correctly and garners a lot of interest and a high number of attendees you’ll need to focus a ton of your time on advertising and the presentation of your home. A few things you’ll need to do include:

Organise professional photos – $100 – $400
Create ad signs – $20 – $80
Create flyers – $50 – $100
Use online advertising and social media – $1000+ per month

It’s important to remember that many of those items listed above have recurring price tags. That means some of the items may need to be further developed like flyers, as they’ll need to be printed again and placed around the city a few times before the auction. Social media campaigns and ad placements will have to continue running until the date of your auction to make sure that the event reaches as many people as possible. Signage may also need to be moved around and the number of signs increased too.

One of the things you’ll need to remember is that an auction takes time to garner interest from the public. It isn’t something you can plan a week in advance and expect everyone to show up – so you’ll need to make sure you have plenty of time beforehand to plan all of your market materials and to start advertising.

Typically its common for the development advertising materials, marketing planning and distribution before your auction to cost upwards of $6,000 and even $9,000. Factoring in the cost of the auctioneer, you’ll be getting fairly close to the price of what you’d be paying for an agent to sell your home, though, auctions will have a higher sale price potential in the end.

 

What does the auctioneer do?

The primary reason you’ll want to hire an auctioneer to sell your home is to spike interest during the buying process and make buyers more interested and engaged in the process and try to outbid each other, which typically results in a selling price that is far higher than the reserve price, and often even higher than the median market value in the area.

If in the event the bidders don’t reach the seller’s reserve price, the auctioneer will let the seller know and suggest a lower price or ask for permission to take lower prices from the bidders, by which the auctioneer can still try to bump up buyers to a higher price.

 

The results will rest on the market

The results you can expect from an auctioneer will depend on the market, the turnout and the auctioneer’s experience. But typically, if the auctioneer has a number of years of experience and you’ve perfectly advertised your home and have a large buyer turnout at your auction – you’ll be able to expect a higher selling price than if you sold your home with an agent.

In Melbourne and Sydney, auctions will usually sell homes faster – if the market is right – and for a higher price than an agent selling your home without an auction. On average homes sell for higher than market value as the buyers in the bidding war often don’t actually know what the selling range for homes in the area of the auction are.

 

Determine your price

The rates and fees charged by auctioneers in each city will differ in throughout Australia, with the more costly rates being found in Melbourne and Sydney and slightly more competitive ones in cities of Brisbane, Adelaide and Perth.

Auctioneers will price their rates in a few different ways, with the most common being; by the hour, a flat fee or a percentage of the sale. Typically you should expect to pay, as a flat fee, around $400 to $600 for your auctioneer’s services, though, nothing is set in stone until you actually contact an auctioneer and ask for a quote.

It’s rare that you will see a fixed fee outlined on an auctioneers website or online profiles as every scenario and different and will have different requirements and different costs. To make an accurate assumption though, you can expect to pay around $500 for an auctioneer, unless they are taking a larger sized commission on your home’s sale.

To budget for your auction, you should factor in everything from advertising to the marketing research and planning, as well as your physical and digital materials and of course the auctioneer. The total price you could be looking at overall is around $5,000 to $8,000.

 
 

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