When deciding to list your property for sale on the market, one of the biggest decisions to be made is whether to auction or sell via private treaty.

Buyers in the market for a new property may also wonder whether bidding at an auction is in their best interests. There are definitely advantages and disadvantages of the auction process for buyers and sellers.

The main advantage for buyers is that they are paying a genuine "market price", ie the price is determined by free market conditions. Usually the vendor is highly motivated to sell, which is why they have chosen the auction option, as opposed to a list price.

The transaction is taking place in an open forum, all activity is transparent and conducted by a professional auctioneer. Due to the openness of the process, the buyer also has the added security of knowing that they cannot be "gazumped". If the bid is successful, it is a quick outcome for buyer and seller.

There are many advantages of an auction campaign for sellers, the main one being the removal of the risk of "over-pricing" or "underselling" their property.

Sales are unconditional - they are not subject to finance, building and pest reports etc. A successful auction campaign generates quick results; the marketing campaigns are usually short and intense, and often culminate in an outcome within five weeks.

Due to the urgency of the atmosphere created, the bidding can gain momentum and may lead to a record price being achieved. A "fair market value" is usually the outcome, as the price is determined by demand from buyers.

In summary, if you want to achieve the best result in the shortest possible time, you should consider an 'auction.