How Sellers Can Botch the Outcome of Their Own Auction
You have spent several weeks getting your property ready for auction. Every inch of it has been washed, cleaned, polished and renovated where needed. The fences are straight and true, paths and driveways swept, there are no weeds hiding in the garden beds and the lawn is immaculate.
Is Everything Really Under Control?
After putting in this effort, what could go wrong? Quite a lot, especially if you, the owner, interfere in the auction process itself. Most people don’t do this deliberately, but they can easily upset the process and make the job of the agent much harder than it needs to be.
As selling agents ourselves, we have seen otherwise promising auctions undermined by owners with just a few careless words or actions. Our agency, Bunbury Real Estate, works with sellers to get the best price for their property in the current market. We give our sellers accurate appraisals of the value of their properties, using the most up-to-date information.
A Well-Prepared Property with a Realistic Reserve Should Sell
This brings us to the first issue that can cause problems. While sellers should approach auction day with positive expectations, they must also be realistic. A well-prepared property backed by a professional marketing campaign and reasonable buyer interest could be expected to sell at an auction.
The pre-auction buying market will already have indicated a price point, and it is this figure that the seller should be considering when setting a reserve. Agents generally ask for feedback from inspections, including asking people what they think is a fair price for the property. We certainly do, and we take this information back to the sellers so they can consider the comments before deciding on their reserve price.
Keep Your Cards Close to Your Chest
We all like a chat between friends and family, but in this instance, the one piece of information sellers should not be disclosing is the price they want. Nothing spreads faster than a rumour, and the last thing we want is genuine buyers deciding not to attend the auction because they heard the price was too high.
No Sale at Auction? Stay Cool
What if the seller has done everything right and the auction was a dud? Maybe it was a football grand final day or the weather was terrible and kept the buyers away. We tell our clients to remain calm as often; the properties sell a couple of weeks later for a good price. It is just the next phase of the sales campaign.
It All Comes Down to Money
The top reason for a property not to sell is the price. Whether you choose an auction or sale by private treaty, the wise old saying still rings true for every commodity. An item is only worth what the market will pay for it, so follow your agent’s advice and spare yourself the anxiety.