Preparing Your Home For Auction Day
Tips for Vendors Auctioning Their home
Typically when a home is being prepared for auction the selling agent would have done all the usual marketing. The normal type of promotion will be done via online real estate portals and social media platforms. Your agent will access their database of potential buyers and alert them to the coming auction. This can be done via an email, text or personal contact. Most good agents will know your area and property values. They should also have a shortlist of buyers that have been active or are looking to buy. The agent should also have a good idea of what buyers are prepared to pay. Having all this information should determine your reserve price.
Do’s
Be prepared. Set your reserve price on what you are willing to accept. Talk to the auctioneer and get a rundown of the auction proceedings.
- Set your reserve price
- Ask the auctioneer how many bidders are expected
- Speak to the agent and ask if potential buyers have indicated what they will pay
- When should you talk to the auctioneer during the auction
- Know the value of properties in your immediate area
- What happens if your reserve price is not met
Don’ts
When it comes to selling everyone hopes that there will be a bidding war that will drive the price of your property up.
- Don’t have overinflated expectations
- Keep your reserve price to yourself
- Don’t be clever and get your friends to bid on the property
- On auction day stay calm
The Auction Day Has Arrived
Remember that not all properties sell at an auction. The clearance rate is generally between 60% – 70%. So, there is a chance your property may not sell. However, this can be seen as stage 1 of the process. In a lot of instances, the property is finally sold to the top bidder within a week. It is good to stay positive but on the day of the auction, you should also prepare yourself if the property does not sell.
What Happens If The Property Does Not Sell?
Don’t be discouraged if the bidding fails to meet your reserve price. Bidders may be bidding on a number of properties at the same time. You may have your reserve but bidders will also have a ceiling on what they prepared to pay. Naturally, potential buyers want to buy the property as cheaply as possible. But if the reserve price you have set is comparable to other properties sold in your area then there is a good chance the sale will go through eventually.
