One of the worst experiences for a vendor throughout the home selling process is to go down the auction pathway, only to have the property pass in because bidding on the big day hasn’t met your reserve or there just wasn’t enough interest generated throughout the marketing campaign. Fortunately, a home not selling at auction is not the end of the world and there are several strategies sellers can employ to achieve success.
Firstly, for an auction to be most successful there must be hype which creates a thick buyer pool that will battle it out on the day. Properties that feature cutting edge design/build quality, are in blue-chip suburbs or have a certain novelty factor are best suited to the auction format. Having a crowd of onlookers on auction day provides an atmosphere of desirability for the property and bolsters competitiveness which can boost prices.
So, what can be done post auction to close the sale of your property?
Negotiate with registered bidders and other interested parties
The first step your agent should take post auction is to negotiate with interested buyers to reach an agreement on sale price. Generally, the highest bidder at auction has first preference in the negotiations. It’s not uncommon for a sale to be made to the highest bidder only a few days after the auction, generally for many thousands of dollars more than their highest bid. If buyer and seller can agree on price and settlement terms, then this is the best outcome. Post auction, your selling agent should be working hard for you to follow up any potential buyers and to negotiate a fair sale price in due course.
Adjust your price expectations
Just about anything can be sold but it all comes down to price. It won’t matter what sales pathway you take, if the price doesn’t reflect the property’s true value and prevailing market sentiment, it simply won’t sell. If your agent is good they will have a strong feeling as to what price you should be expecting to achieve for your property without under-pricing for their benefit of a quick sale.
Both timing and presentation is important when adjusting price expectations. So much of buying a house is deeply psychological and emotional and this is where you can play the pricing game to your advantage. For example, buyers are likely to see superior value in a property advertised for offers over $990,000 than for offers over $1,000,000? As irrational is this sounds, for the sake of $10,000 you are likely to generate more interest in your property pricing this way. It is also important that price adjustments are made swiftly post auction so they are noticed. Too often properties languish at the bottom of the listings with high prices and are soon forgotten in the volume of new stock coming onto the market
Assess your selling agent
It might be the case you feel your selling agent isn’t working as hard as they should be for you. This can particularly occur post auction where the marketing campaign has already run for at least a month and regular open for inspections are no longer scheduled. If you do feel your agent isn’t doing the job you’d hoped, firstly its always best to confront them and discuss any issues you have so that both parties can work towards a resolution. Remember, the agent only gets paid on success, so it is in their best interest to find a buyer for your property.
If it has been another month since auction day and still no sale result has been achieved, it might be worth getting a second opinion from another agent. A new agent will be able to provide a fresh perspective of your property and how it should be priced and sold. A standard residential Form 6 usually gives your agent exclusive marketing rights for 90 days. After this period, multiple agents can list the property under open listing.
Respond to feedback and adjust your selling strategy
Throughout the home selling process, you will likely receive feedback from a range of people from prospective buyers to neighbours, agents and family. For example, people may comment on the overall presentation of the home. There could be an overgrown garden or an area of the property with flaking paint that hinders the overall polished image you are trying to present to market. It would be worthwhile to heed this advice and take the necessary steps to tidy up the property as best you can.
It’s also worth considering the time of year you are trying to sell. Traditionally, peak selling season runs from October to December in Australia with buyers more active during the warmer and longer days. During the cooler months, people are generally less motivated to view and move into property. For this reason, if you didn’t have success selling at auction in June, try running again in late October using another sales method.
If you’d like to speak to a sales team that is honest and upfront, and who will run a sales campaign tailored to your specific needs and circumstances, please get in contact with residential sales director Anthony Oddo on 0430 028 254 or [email protected].
If you’d like to find out why so many agents are pushing to sell your property via auction, Click Here!