Ran across an interesting article here on the auction process, written by an experienced property investor and occasional developer, and I generally agree with everything in it.
It’s too long to quote from…I’d have to cut and paste a lot of it to give the sense of it…so you’ll have to visit the site (which is well worth a read through). Basically, Davo’s contention is that:
….. auctions primarily benefit agents. Not buyers, not seller, but the agents themselves…
…and he goes on to say why in great detail. Read it here in Why Auctions Are Good For Agents.
The only time auctions, in my opinion, are a decent method of selling property is right about now…when the market is hot and people are paying over the odds.
Conversely, in a soft property market, my personal opinion is that there is no worse method of trying to sell your property than an auction…which is usually yet another blow for owners getting their property mortgagee sold that way. Why security holders did this during 2008-2011 is a mystery to me, but they mostly did as a matter of policy, despite a “normal” sale backed by valuation being a much better option.
Anyway…read on. It is an excellent rant!