Selling my home at auction
Selling by the auction method involves a highly structured and extensive marketing campaign designed to expose your property to the greatest number of potential buyers, who compete to maximise your sale price and minimise the number of days your property is on the market.
This method signals to the market that you are committed to selling and that buyers need to prioritise their inspection of your home with some urgency as it will be sold on, or possibly before, the advertised date.
With price removed, enquiries are higher and increase your opportunity to reveal the premium buyer for your property. A premium price is achieved from open competition between buyers in one place at one time and with a strong desire to purchase your property on the day. They see each other, it gives them confidence. They want to win and they know who they have to beat, to own your home. Buyers like the transparency of auction.
The key to success on auction day is the thorough preparation by the salesperson during the entire auction campaign to ensure as many buyers as possible are in a position to bid.
What is a ‘Pre-auction offer’?
If you receive an offer that is “auction stopping” that you wish to accept, we can bring the auction date forward, contact all your registered buyers and conduct the auction sooner than anticipated. This offer is usually called a pre-auction offer.
The Benefits of Selling at Auction
Selling a property at auction is an open process where buyers bid against each other to purchase the property. You set a reserve price before the auction and once this price is reached, the highest bidder becomes the successful buyer.
- All bidders are cash buyers – there are no conditions on the offers and sold means sold
- It creates a sense of urgency as there is a fixed period of time marketing your property
- Competition is heightened which can lead to a premium price
- You can still consider offers before the auction if your auction terms and conditions allow for it
- You are in control : you set a reserve price which is the lowest price you are willing to accept
- Your real estate consultant will know how many interested parties will be in the room as buyers must register : there is no ceiling on the price no restrictions by advertising a price
- Preference is given to properties in auction and tender campaigns throughout all our marketing material
- Great for properties that have a special something about them or where they are difficult to value
Do I need to attend my property auction?
If at all possible, yes we’d highly recommend attending your property’s auction. While the auctioneer and your estate agent (who might be the same person) will be running the show,
it’s always best to be on hand in case any last minute questions crop up.
For example, some buyers might want to know if there’s any wiggle room on things like settlement dates.
More importantly, you’ll need to make a call on what happens next if your property doesn’t reach its reserve price. You usually have a few options if this happens:
You might be able to lower your reserve and the property will sell to the highest bidder who bids at or above this amount.
You could have the option to take the highest bidder to a private room and try to negotiate a higher bid. If you’re successful, this bid becomes the new reserve, and the auction will resume.
Your home could be passed in, meaning it hasn’t sold at auction. If any of the above happens, it’ll be certainly easier to discuss your options with your real estate agent and auctioneer if you’re on the ground.
The bottom line …
You are the person who will set the reserve price and terms, below which the auctioneer is not permitted to sell. This will guarantee your property will only sell for the reserve price or more.