Selling via auction
How you sell your property can have a major bearing on the price and conditions achieved at sale.
An auction is a successful sales method for sellers which offers transparency, urgency and the opportunity to secure a premium result.
Across Australia, LJ Hooker Commercial will be hosting a portfolio auction event on June 28. In capital cities and major metropolitan regions, the spectrum of properties – from serviced offices through to logistic warehouses and neighbourhood shopping centres – will go under the hammer in a co-ordinated national marketing campaign.
LJ Hooker’s National Auction Manager David Holmes said auctions were just as suited to commercial campaigns as they were to residential properties, with the length of the campaign the primary difference.
“With commercial property campaigns, they can sometimes be extended to eight rather than three to four (for residential) weeks because of the extent of due diligence required,” Mr Holmes said. “Whether you’re purchasing a property an owner-occupant or a landlord, there are multiple variables to weigh up before committing to a contract.
“Otherwise, the process is largely the same. The campaign is driven by a determined date and the competition and urgency is the same. Buyers have three chances to secure the property: by tabling a pre-auction offer so strong that it forces the seller to withdraw the property; on the day, under the hammer; or in post-auction negotiations.”
Mr Holmes said commercial auctions also tended to be less emotional for both buyers and sellers because it all comes down to yield, tenant quality and lease conditions, and WALEs for a multi-tenanted facility.
“From a buyer’s perspective, auctions are more beneficial because you know that you’re buying at fair market value,” Mr Holmes said.
“You also know that you’re dealing with a motivated seller who is ready to sell, rather than with a vendor who may just be testing the market.”