FAQs

Does it cost sellers any more to use the FairFast Auction System?

No. Fairfast is NOT a real estate brokerage. We are a marketing and consulting company specializing in helping agents sell their listings by auction. Our fee is paid by the buyer in the form of a Buyer’s Premium. The traditional arrangement whereby the seller pays the selling agent’s fee for service remains unchanged.

 

How long does the average property Auction take?
It depends but an average Aution campaign is around 2 to 3 weeks. Where possible, we prefer a 10 day lead in to set help the selling agent prepare their marketing and make sure they are familiar with the process.

 

How do I know if Auction is right for me and my client?
Understanding the process is key. Agent’s who don't know how to handle an auction campaign should not be offering the service to their selling client. Your client needs to be motivated to sell. There needs to be a genuine reason for selling as opposed to someone looking for a miracle price which never works regardless of how the property is marketed.

 

How does Auction benefit me?
As agent, you can expect a faster sale that will be unconditional. You’ll connect with more buyers because you are not marketing at an optimistic or unrealistic asking price. Refer to the advantages to selling by auction info under the SELLERS tab

 

Are Auctions only for distressed properties?
No. This is a myth distributed by people who don’t really understand the process. Selling real estate by auction is now common in a number of first world countries.

 

How does the Auction process work?
A date and time for the auction is set. Then the Fairfast team gets to work with the selling agent to make sure all marketing is as good as it can be. Where possible, the selling agent holds a number of weekend open house times to allow buyers the opportunity to view.

 

What does it cost?
There is no change to the regular arrangement between selling agent and their selling client. The buyer pays Fairfast a Buyer’s Premium between 2 and 3%

 

Do you accept pre-Auction offers?
All pre-auction offers are presented to the seller. In the event the seller choses to accept a pre-auction offer, all registered buyers will be notified.

 

Where does the Auction take place?

The auction can happen online via the Fairfast app or live at the property with an auctioneer or both

 

How does Auction benefit agent and seller?


Here are the main reasons why Auction is a highly successful selling method:

  • Why set a limit on what a buyer will pay for your property? An auction starts from a base price estimate and works up with no limit. A ‘For Sale’ asking price linits buyer interest and also limits a potential sale result as most offers are normally made BELOW the initial asking price.

 

  • A property is at its most interesting when it first hits the market because it’s fresh and new. The problem, however, is that most new listings come on to the market at a high or optimistic price which turns buyers off. On the other hand, a property for Auction hits the market at a lower price, which is more likely to encourage a buyer viewing.
     

  • More buyers become aware of the property.
    Buyers shop on price. The nature of an auction is to begin low and rise from an estimate at the bottom of the value range. This attracts more buyers. A traditional ‘For Sale’ listing normally starts off with a higher or optimistic asking price which means less buyers become aware
     

  • More online buyer interest.
    Online marketing usually dominates a good Auction campaign, so starting with a conservative base price estimate will generate extra traffic because most buyers will use a price range in their search criteria. For example, if my preferred buying range is $1,500,000 to $1,650,000 my search is going to miss a property listed for sale at $1,800,000
     

  • More buyers see inside the property.
    Once a buyer moves beyond looking at the property from a computer screen or mobile device and actually sees inside, one of two things will happen: They will either ‘warm up’ on the listing and seek more information, or cross it off their list.  If they ‘warm up’ they will start researching values and decide what the property is worth to them.
     

  • More buyers become emotionally motivated to buy
    So far, more buyers have become aware of the property and more have actually seen inside. They’ve been thinking about the property a lot. In fact, they are so emotionally invested with the opportunity of actually owning this home that they can think of little else. This is what I call MMI or Mentally Moved In.  They see themselves living in the property and enjoying all it’s features. They see themselves as the next owners and that’s where the magic happens.
     

  • Buyers notice other buyers are interested
    When a property sits on the market for sale with minimal buyer interest and viewings, there is really nothing to motivate a buyer to make an offer. On the other hand, a good Auction campaign that generates multiple buyer interest creates a buzz as buyers notice other buyers are interested.
     

  • An Auction provides a deadline for action
    An Auction date and time delivers a fair and specific ultimatum to interested buyers and delivers two very powerful marketing features; Chance of gain and fear of loss.

 

  • An auction contract is unconditional
    As a rule, an Auction bidder is buying unconditionally meaning their purchase is not subject to getting a loan or a building inspection. Buyers need to satisfy themselves before bidding and signing a contract that they are able to purchase the property and will be doing so without further conditions.
     

  • People want something other people want.
    Have you ever gone to purchase something only to discover it’s sold out? This happens all the time and it’s human nature to want it even more when you know others want it too. It’s the same with property. When a buyer is interested in a property and witnesses others interested buyers, their interest level is increased. 
     

  • Cruising above the reserve price
    The magic happens once bidders know the reserve price has been reached and the highest bidder will be buying the property. This is their opportunity to stand and deliver. The auction will then continue until only one bidder is left.
     

What happens if the Auction is unsuccessful?
When a property fails to sell at auction, we say it’s ‘passed in’ Buyers are informed of the seller’s reserve price and negotiations begin.  Many auctioned properties are sold this way.

 

I am ready to sell my property at Auction. What now?
Awesome! Let us know and we’ll send you a document detailing our agreement. Once signed, we start working with your agent to help them market the property towards a successful auction result.

 

I am ready to register to bid. What now?
Awesome. All you need to do is go to the BUYERS to here on this site and register to bid. You’ll be asked to pay a deposit to show you’re a real person and that you have a genuine interest in the property. The deposit is refunded immediately after the auction if you are not the successful buyer. If you are the buyer, you’ll be asked to immediately sign a contract to purchase the property and pay a further deposit.

 

I’m a seller and want to look at using Fairfast to auction my property but I don't have an agent.
No worries. Let us know and we’ll direct you to a good local agent who knows how we work.

 

I’m an agent. How do I become a FairFast preferred partner? 

Excellent, just send us a message, telling us a bit more about you and your business and we’ll add you to our expert panel.

 

When I agree to sell at auction, am I committing to a sale at any price?

No. You are not committing to any price as it’s impossible to determine what you might expect until marketing has started and buyer feedback is available

 

When do I set my reserve price?
Normally the reserve price is established 24 hours prior to the auction

© 2018 Fairfast Real Estate Auctions