Auctions are a great way to sell a property with a fast pace and a short selling period.
Here are five things to bear in mind if you choose to sell at auction. We think it’s a great way to sell, and we’re always happy to talk to people thinking of an auction about what to expect and how to end with a successful sale.
Set your reserve price
You’ll set your confidential reserve price a day or so before the auction. This figure is up you, but you’ll be guided by your agent and buyer feedback in the lead-up to the big day. This is the price at which the property will definitely sell if a bidder reaches it, so think about it carefully.
One of the great things about an auction is that the market sets the price, and brings interested buyers into direct competition with each other.
Get your house in order
You may choose to sell in a private bidding room away from the property. This can work well in some cases, but if your property is big enough, it’s worth holding the auction on site so more people will attend. Hosting on site will also help forge that all-important emotional connection between buyers and your property.
If you are holding your auction at your property, you’ll need to ensure it looks absolutely spotless and beautiful. Get cleaners in, buy some fresh flowers, and ensure that every room is spotless and beautifully presented – talk to us about our excellent styling services.
Prepare yourself emotionally
Don’t be surprised if you find yourself feeling emotional on auction day, particularly if you are selling your own home. While an auction is exciting, it comes at the end of a hectic marketing campaign, and selling a house is stressful at any time. It’s worth getting a good night’s sleep beforehand and clearing your schedule as much as you can. This will mean you can focus on making the right decisions on the day.
Know what happens on the day
Prior to bidding, the auctioneer will read out the terms and conditions of the auction. This will include the deposit required at the ‘fall of the hammer’ and the fact that the sale is unconditional (no cooling-off period).
Then the bidding will start. Bidding may be fast and furious, or more subdued. Your agent will have some idea of registered bidders who have said they will turn up on the day. Other bidders may appear for the first time, so there’s also an element of surprise with an auction.
Once bidding reaches the reserve, the auctioneer will announce that the property is ‘on the market.’ Bidding may speed up at this point. If it doesn’t reach reserve, however, it will be passed in.
What’s your game plan if it doesn’t sell?
If you home is passed in, don’t despair. This doesn’t automatically mean that it won’t sell on the day. Your agent will begin negotiating with the highest bidder to see if you can meet in the middle.
The hours following the auction can see a sale. Prepare yourself for this outcome and think about your strategy should your home fail to meet the reserve. You may agree on a lower price with the highest bidder. Or you may choose to put the home back on the market. Your agent can guide you here.
Talk to us
An auction is fast-moving, exciting and stressful. You may find yourself needing to make decisions quickly to keep the momentum going. Have a game plan in place prior to auction day, and discuss this in detail with your agent. That way, you are in control and there are no surprises on the day!