The proliferation of real-estate and renovation culture in this country have led many home-owners and investors to believe that ‘Auction’ is the magic bullet when it comes to scoring a fantastic sale-price.
It’s true that, when done right, putting your place up for auction can deliver seriously great results, but the more prepared you are, the better your chance of landing multiple bids above your reserve.
Get your marketing right.
It’s easy to imagine hordes of people showing up, wads of cash in hand to bid for your place. To ensure a good turn-out, when it comes to marketing, more is definitely more. Ensure your agent is using the best pics/video possible to showcase your home, and use all the tools at your disposal.
Set yourself a budget for marketing, and ensure a good mix of traditional channels like print and trade papers, and online. Recent studies show a correlation between the amount and effectiveness of marketing and the likelihood of achieving a price above the reserve.
Make sure your auctioneer knows what's up.
Just like your agent should know your property back to front, it helps to familiarise your auctioneer with what they’re selling. Walk them through your home, emphasising the positive features that may attract potential buyers.
Give them a bit of history on what you and your agent have been up to so far as well. Tell them how much interest there has been, how many inspections have taken place, if there has been any valuations done, and if there have been recent building/pest inspections.
Set your action plan.
A day or two before the auction, bunker down with your agent and set out your plan of action for the big day.
In this meeting, you should go over important details like:
- your reserve price
- how you'll communicate with the agent during the auction
- if and how you intend to use any vendor bids
- what you'll do if your reserve price isn't reached
- how many bidders you're expecting to show up
- if a sale is finalised, whether you're willing to be flexible on details like a deposit amount or settlement date.
It’s a good idea to schedule another quick catch up about 45 minutes before the auction on the day, just to confirm none of these details have changed last minute.
Ask the 'silly' questions.
If you’re planning your first auction, don’t be scared to ask your agent plenty of questions. They will have heard it all before, and are a wealth of information.
It’s normal to be nervous, so here are a couple of common questions and answers around the process.
- What if no-one shows? This is fairly uncommon, and your agent will generally be able to gauge interest leading into the day, and should advise you accordingly, allowing you to make alternate plans if necessary.
- What if no-one bids? There may be many reasons for this – nervousness from bidders, watchfulness, etc. In this event, the auctioneer will nominate a starting bid to get the process moving.
- What if my reserve isn't reached? Your auctioneer will consult with you, at which point you can initiate an approach to the highest bidder, to see if they’re willing to meet you halfway and increase their offer. If you’re not entirely happy with the scenario, the house won’t sell on the day and is ‘passed in’.
- What happens next after a sale? Your auctioneer will approach the buyer to sign contracts immediately. Once you sort out the deposit payment, and you sign the contracts as seller, that’s it! Congratulations!
At The Greater, we’ve been helping our customers reach their property goals for over 70 years, no matter what they may be. For this reason, we like to think we’re the experts when it comes to home finance.
If you’re looking to sell at auction and move on, or you’re in the market for your first or next home, we can help.
Check out our range of handy online Home Loan Calculators to discover your Borrowing Power, your Deposit Amount, and Compare your Repayments.
Take a quick look over our range of great value, easy to use Home Loans to see how we stack up.
And if you’re after more info, or are ready to start a conversation with an expert, simply make a Home Loan Enquiry online.
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