Should I Auction My Commercial Property?

Deciding the best method of sale for your commercial property can be a difficult decision. The choice can be a lot easier if your real estate agent is experienced and acting in your best interests.

There are four main points when deciding whether an auction is the most ideal method of sale:

• The current market conditions: Auctions can be a good way to achieve a quick, unconditional sale in a strong market. If the market is slow an auction can be a useful tool to draw eyes to your property to create interest from buyers that may otherwise skip over the opportunity.
• Type of property: Auctions are often used to sell industrial and commercial properties that are in high demand. However, an auction may not be as effective for properties that are expected to appeal to a small section of the buyer pool or when one ideal buyer would view the property at a higher price than the rest of the potential buyers (e.g. a very specialised fitout).
• Target market: If the ideal buyer for the property is expected to need due diligence or finance conditions in order to pay the most for the property, then auctioning the commercial property may not be the best choice. Instead, an offers to purchase campaign or private treaty sale would allow buyers to be conditional in order to achieve a higher realisation for the asset.
• Your own personal financial circumstances: If you need to sell your property quickly, an auction may be your best option to bring matters to a head with an unconditional result. This does not mean that you should only auction when you are needing to sell quickly, rather it can be one of the most effective tools if that is the case.

The Auction Process

It is not unusual for owners to have had a bad experience with an auction which can taint their view on the auction process. The fact is, there are multiple techniques that can be executed during an auction campaign. There is a right way and a wrong way. Often the training that an agency provides to their staff can dictate the script and framework that is implemented, and it can result in buyers and sellers feeling hoodwinked. Some agents will encourage low offers to try to get sellers to have as low a sale price as possible, while better agents will be able to walk the line of keeping buyers interest while not deceiving either party.

At Crew Commercial we have a tested process that ensures buyers are not mislead and sellers are engaged in the process so they can make educated decisions. This ensures the best possible outcome is achieved.

Should I Auction My Property In-Rooms or On-Site?

From our experience on-site auctions usually achieve a higher sale price than an in-room auction. We have found that buyers become more emotionally connected to the asset if they are standing looking at the property while bidding.

What Agency to Sell My Commercial Property?

Crew Commercial is a leading commercial real estate agency in Brisbane and the Gold Coast. We have a team of experienced property agents who can help you with all aspects of selling your commercial property, including:

• Property appraisal: We can provide you with an accurate appraisal of your property’s value. Our agents are experts in their geographic patch who correctly analyse the property through multiple appraisal methods so you have a genuine, no bollocks estimate of how your property will be assessed by potential buyers.
• Marketing: We create customised marketing campaigns that will reach a wide range of potential buyers and attract the target market to your property. The marketing is not a cookie cutter package, but a strategy that is right for your property.
• Negotiation: We represent you in negotiations with potential buyers in a professional manner that creates win-win outcomes. Our experience in dealing with different personalities, negotiation tactics.
• Stakeholders: We are strongly connected through the Brisbane and Gold Coast market where we can recommend a range of solicitors, town planners, valuers.

Contact Crew Commercial today to speak to an experienced property agent about potentially auctioning your commercial property.

Author: Josh Wright
Copyright: Crew Commercial Property Pty Ltd 2023