Making a decision to sell at auction is sometimes a frightening thought for vendors. The auction process is often misunderstood by vendors as the agent does not initially take the time to explain all of the benefits of selling at auction and clarify some of the main concerns that vendors have about going to auction. Furthermore some agents often push vendors into a particular selling method without giving them a full brief on which method would be most suited to their situation and property. Here are some tips for you if you decide to sell your property at auction.
In order to have a successful auction, it is essential that the property attracts as many prospective buyers to the auction and creates a buzz. This is done by advertising the property in every possible medium and also making sure that all the neighbours are invited. Having a ‘BIG’ crowd at an auction creates a perception to prospective buyers that there is strong interest in the property and that they need to bid in order to purchase the property.
Setting a reserve price is done prior to the auction and is the lowest price that you would accept. This price should be kept confidential and the agent will not disclose your reserve price to any buyer prior to the auction. The reserve price should take into consideration the feedback that the agent has received from prospective buyers during the advertising campaign and should not be set to low.
When advertising prior to auction it is essential to give prospective buyers guidance on price. The advertising price should be set in accordance with the comparative market value of the property and with consideration of the vendor’s reserve price. Some buyers will not contact the agent if they see the property advertised for auction without an indicative price range so it is vital to provide this information to them.
Choosing the Right Auctioneer
Before choosing an agent to market their property for sale, many owners contact several agents to see which agent they feel most comfortable with and which agent they feel would achieve the best possible outcome for them. Just like choosing an agent to market your property, it is fundamental that you choose the right auctioneer. The success of an auction is highly dependent on the ability of the auctioneer. The best auctioneers have a tailored strategy for conducting an auction and continually improve their abilities through training. We recommend viewing at least one auction called by the auctioneer that you are planning on selecting prior to giving them the green light.