The auction process is a proven and effective way of selling a home. While it is not necessarily the chosen method of sale for every property, auction should be considered and discussed with a member of the Real Estate Institute of Tasmania when developing the sale plan for your property.

The main advantage of the auction system is that it provides the most accurate measure of what the market will pay for the property.

It also provides sellers with three opportunities to sell their property through an acceptable offer before auction, on the day, or through negotiation conducted afterwards, if the reserve is not reached at auction.

Unless specific prior arrangements are made with the selling agent, both settlement date (usually 30 days after auction) and the amount of deposit (usually 10 percent of the purchase price) are pre-determined and are part of the conditions of purchase at auction.

The auctioneer controls the auction and once the hammer falls the property is sold. These conditions make the auction process appealing to the seller.

Occasionally, offers are made to try to induce a vendor to sell before auction. These offers will normally only be considered if they comply with the conditions of auction mentioned above. If a property fails to sell at auction, there is an opportunity to negotiate a sale afterwards, generally with the highest bidder.

Given there are three opportunities to sell, the auction process is very appealing to the seller.

The most important aspect of auctioning your home is determining if an auction is the best sales method. REIT member agents are the best people to advise you on the decision.

Their experience will allow them to determine if your property will achieve a better price by auction.