Why Auction?
Why not auction?
Auctions are one of the most powerful methods of sale to secure the ultimate result in whatever market your in!
I will work with your agent, to help you sell your property using the auction process.
Maybe you have had a good result before, or maybe your property is going nowhere using the Private Treaty method (Private Sale). It may have been recommended to you, regardless it is worth giving it serious consideration.
1
Emotional buyer in an emotional situation
Having buyers who love your home, attend an emotional situation like an auction is the key to a successful result. They are clearly aware they can miss out and will often bid significantly over their original budget to secure your home. This is the key to the premium price, but if you are not getting buyers through, not many offers or they are low ones, and not even a 2nd inspection, then you have not found your emotional buyer/s.
Creating a brilliant first impression, with appropriate attention to maintenance, cleanliness, lack of clutter, and styling will only help to create further desire in your buyers.
The auction is the emotional situation and creates competition for your buyers, and is the vehicle to find the best price in the market.
2
Pricing Strategy
The pricing strategy is critical to establishing large numbers of organic inspections, from which your emotional buyer will come. If you do it right, you have every chance of achieving a great result. If done wrong, you are likely to get very low numbers through your property. However, all is not lost, and any owner can make adjustments with their agent during the campaign.
In addition you need a 'GPS' and 'Speedo' to confirm you are on track, more specifically you must be receiving regular feedback, reports, and vendor meetings with your agent so that you understand what progress is being made and consider any recommended changes your agent suggests.
3
Deadline
The deadline is a key feature in the auction process in contrast to a Private Treaty. It allows you time to gather the maximum interested buyers, and set a time when they will compete against each other. Buyers, particularly the best ones, don't want a contest, as this means a higher price, consequently they will try and negotiate before hand. This needs to handled well to ensure all bidders attend your auction!
Also the 3-5 week campaign means that rather than selling it quickly to the first Joe Blow (apologies to anyone with that name) that sees it in a Private Treaty, in an auction you are giving your property maximum exposure to those buyers in the market today. Also the best opportunity to see it before it will be sold, again to maximise your price.
4
Buyer communication
Another key to a great auction (this also applies to Private Treaties) is genuine, helpful and consistent communication with ALL of your buyers. (You are not always sure which buyer will be the purchaser!)
In addition, developing good relationships with buyers cannot be understated, and if your agent/auctioneer is helpful, and asks the right questions, this could make or break an auction (also a Private Treaty!) The aim to have as many BIDDERS at your auction as possible!
Also your agent must have a different strategy here with buyers compared to a Private Treaty, that is, to not take any offers prior to auction, thereby ensure buyers will be there on the day. This is a special skill an auction agent must have, to ensure all qualified buyers attend on Auction day.
5
Pre-auction strategy
After assessing all buyers and their likely interest, an auction strategy should be developed in consultation with the vendor.
Not every property will sell at auction, some may sell before, some on the day, and some afterwards, however a strategy still needs be developed, and the vendor must know what the plan is.
This is even more critical in 1 buyer auctions and also 2 buyers auctions (where the buyers have significantly different budgets), which I am both well versed at dealing with.
6
Auction day
There is "social proof" to a buyer that a property is desirable, when they see a crowd at the auction and buyers bidding, creating further FOMO. Buyers have made a decision to take time out of their busy lives to potentially buy your home, without knowing exactly what they will pay, and in may cases, pay a lot more than they had originally planned. By attending, they signal their intent that they will buy your home, but each buyer will have their range, and of course the cream will come rise to the top in the end.
As buying at auction for most people is rare, this only further heightens the emotion, and therefore your price.
