Professionals Arthur Johnston Snowball
256 York St Albany
(08) 9841 1777
(08) 9842 5818Contact us
GUIDE TO SELLING BY AUCTION WITH PROFESSIONALS ALBANY
Is auction the easiest selling method?
It takes more effort from all parties involved.
To run a successful auction campaign is a process. It is a process that requires discipline from the agent, commitment from the seller, teamwork from the agency and skill from the auctioneer. When all these aspects come together, you have the best selling method available!
WHY GO TO AUCTION?
There are many reasons, the main ones are as follows:
1. 3 opportunities to sell – prior to auction day, at auction, and post auction.
2. Let buyers fall in love with the property first, worry about the price second. Buyers are not put off by the sellers/agents price in the first instance and will often pay more once they have some “emotional commitment” to the property.
3. No ceiling on the price – let the competition determine and drive up the price.
4. You set the terms of the sale, NOT the buyer – sale date, deposit, conditions and settlement time frame.
5. Auction is the most transparent method of sale – you can see the level of interest and competition, and buyers can see and hear who they are competing against and only have to place another bid to stay in front.
6. Cash, unconditional contract – why wouldn’t you want to deal with “cash” buyers first? Only consider “conditional” offers if the property is passed in.
7. You receive true market feedback from buyers who are not influenced by an asking price and you can use this information to set an appropriate reserve price.
8. Set time frame for the marketing campaign. This creates a sense of urgency for buyers and also gives sellers certainty with regard to home opens etc rather than “we will just open it up every weekend until it sells”
9. Shorter selling time – properties listed for auction generally sell much quicker than private treaty, particularly in a slow market.
ARE THERE ANY NEGATIVES WITH AN AUCTION?
1. Too expensive – an auction doesn’t have to cost much more than private treaty (the common method of listing with an asking price). Marketing is more “intense”, and you will be required to pay for some extras such as full page advertisements, but advertising is over a short period of time and your property benefits from the extra exposure – making it stand out in the market against your competition.
2. Buyers will be put off by tough conditions – it doesn’t have to be 10% deposit, 30 day settlement – reduce the deposit and give some flexibility to the settlement eg. Around 5% deposit (a flat $ amount is even better) and 30 – 60 days to settle.
3. Buyers won’t bid on a “cash, unconditional” basis – they will if they want the property, they just need to get organised. First home buyers can be an exception to this and it maybe worth considering allowing them to be on a pre-approved finance basis – still better than waiting 3 weeks for finance approval without knowing whether they will get it or not.
4. If it doesn’t sell at auction, it is a failure and a waste of money – auction is a process, not a “day”. Selling “under the hammer” is the result we all love, but very often the auction serves as a process for “flushing out” the most serious buyers with whom we can negotiate after auction. Most auction properties are sold within days of the auction, and if not, you have 4 to 6 weeks of excellent market feedback to set your asking price for the next phase – private treaty. The property has not gone “stale”, nor suffered from multiple price reductions making buyers think there is something wrong with it or that it is time to go in with a super low offer.
5. Our home is not right for auction – most properties will attract competition if they are marketed correctly.
6. The market is not right – we have had terrific success in the best and worst markets – there is no “right” market.
7. It’s too much pressure – if you are really nervous about the auction day, go to a friend’s house and either have the agent keep a phone line open so you can hear what is happening, or get the agent to call after – no problem.
When you are dealing with Professionals Albany, you benefit from our experience and the services of WA’s top auctioneer; we aim to make the experience enjoyable and rewarding.