Thinking about auctioning your home this year? Wondering how much it costs to sell a house at auction? Below, we’ll talk you through the costs of hiring an auctioneer, and some of the hidden marketing costs involved in selling your house via auction.
How much does an auctioneer cost?
An auctioneer can cost you anywhere between $200 and $1000 dollars, depending on your location and choice of real estate agency.
An auctioneer’s cost can be marketed as ‘free’. However this generally means the cost will come out of the commission amount paid to your real estate agency when they sell your property. It’s a good idea to get some clarity on auctioneer costs before you choose which real estate agency you’d like to appoint to sell your home.
Our comparison tool allows you to compare costs like auctioneer fees, real estate agent marketing fees, commission rates and more all in one place.
It’s important to note that the auctioneer fee isn’t the only cost you’ll encounter when auctioning your home. You’ll want to let people know that your property is going up for auction. So, you’ll need to be prepared to pay for marketing (advertising) in order to attract many buyers to your auction. The bigger the crowd, the bigger the hype which can result in increased competition.
What’s involved in selling via auction?
Sellers choose to auction their homes for many reasons. The main advantage of auctioning your home is the likelihood that you’ll sell for a higher price compared to selling privately. This is generally driven by a time limit on negotiations creating an urgency to bid, and increased competition between prospective buyers.
It’s a good idea to talk to real estate agents in your area before you decide to auction your home. Market conditions will affect your chances of auctioning your home successfully. A good real estate agent will be able to advise you the most suitable method of sale for your property. Also, they’ll be able to advise you of the clearance rates in your local area (the percentage of auctions sold successfully at auction or prior to auction) to help you decide on the best way to sell your property. Compare agents now.
A result whereby the property price doesn’t hit the set reserve price price means the property would be ‘passed in’. Often, the highest bidder will be given the opportunity to negotiate further, and the property will still be sold that day.
A summary of auction advantages and disadvantages:
There’s a time limit on negotiations creating urgency
The competitive nature of auctions
You’re protected by a reserve price that you set
Intense marketing in the lead up to auction
Some potential buyers may find the auction process intense and may not bid
Marketing and advertising costs can be more expensive
Properties are often ‘passed in’ which can be disappointing as a seller
Slow bidding can send an incorrect message about the value of the property
Take a detailed a look at the pros and cons of selling via auction in detail here.
Marketing costs when auctioning your home
When you sell your house via auction, there are costs involved to advertise not only your property, but the auction day itself.
Marketing activity leading up to the auction may include:
Signage (e.g. a signboard and auction flags)
Online listings on property portal websites
Listings in local newspapers and magazines
Social media advertising
Flyers and brochures
You can expect to pay somewhere between $500 and $2500 on advertising. A successful advertising strategy can add tens of thousands of dollars to your sale price, as you’re giving your property the maximum amount of exposure possible to prospective buyers.
Marketing costs are commonly included in the agent commission rate. So, it’s best to clarify this detail before appointing an agent.
Get a more detailed view on advertising costs when selling your property here.
To discover the cost of auctioning your house, the best place to start is comparing real estate agents online. You can compare real estate agents here, including commission information, marketing strategies, sales history and independent homeowner reviews.
To calculate the total cost of selling your house, including auction costs, you can head to our Selling Costs Calculator to estimate how much your property sale will cost.