D-Day indeed. After 4 weeks of intensive marketing including open homes every weekend, tomorrow is the day that our house goes to auction. This is a common way of selling real estate in NZ. Certainly it seemed very strange to us when we first arrived here some 16 years ago. We always thought that auctioning real estate fell into the realm of mortgagee auctions!!!
In NZ there are as many homes sold by open auction as by private treaty, or tender. It’s common and accepted.
The advantage is that the market will determine the proper price on the day just as in any other auction. Another advantage is the generation of emotions at an auction.
The disadvantage is the openness of the process and the possibility that there aren’t as many buyers/bidders as one would wish for.
Of course, if the reserve price that we set is not met then there are a number of options. We can continue to negotiate with the highest bidder and see if a negotiated contract can be achieved. Alternately, we can put the house on the market at a pre-determined price and market it for as long as it takes to sell.
Given the interest that we have seen during the marketing campeign, we are confident in reaching a sale agreement tomorrow.
Everyone, hold thumbs thumbs for a great outcome.
