Auctions can be nerve-wracking but also a very exciting experience.
Being a seller you’re probably wondering what auction day has in store for you, so our Local Property Expert in Melbourne, Andrew Leung has pulled together some top tips to ensure that your day goes as calmly and successfully as possible with some handy DO’s and DONT’S…
Spread the word
- Some owners are quite private, but to get the best possible price let the world know! A ‘For Sale’ board erected on the property is an absolute. A board never ceases to get the neighbour’s attention which ultimately helps boost the crowd numbers on the day, and rest assured, they have told someone else that is looking to move into the area about your property.
- Tell friends and family to come along for auction day, as the actual bidders and potential buyers don’t know who your family and friends are and they think they might be other competitors!
Listen to the market and your agent
- Auction day is the biggest tester for buyers who have shown interest in if they actually want to buy your property. A good Local Property Expert would have spoken to every single buyer that has come through the property.
- Your Local Property Expert’s extensive experience can often gauge buyer behavior. There are the serial investors that never buy at auction and stalk property after it has passed in, but if your property is targeting homeowners, they will come if they want your property or they have gone to bid on another property that they believe is better then yours. We all want to think our home is the best, but we need to have a logical approach to this so that when a good offer is presented on the day you are in the best possible position to maximise your sale price.
Present your property in its best possible light
- Keep the interior simple, welcoming and spacious. Remember that more space means more real estate, which ultimately means more money!
- Even if your property is tenanted, ask your tenant to vacate the property in time for you to prepare it for the auction day.
- It’s important that all buyers are communicating to one source, your Local Property Expert (and auctioneer on the day) as they are the ones getting the feedback directly from buyers throughout the sales process and they know who is keen and who isn’t.
- Don’t talk price to family, friends and most importantly buyers. On the day and throughout the process everyone wants to know your reserve price that is the only reason buyers ask if you will sell before auction. Don’t lose your best card by letting buyers know that you will sell before; let your Local Property Expert handle it. You have to make the bidders do the work to find that out by bidding!
Stand in the crowd
- Unless you have total control of your poker face and body language stay away from the eyes of buyers. I tell my customers that a frown tells a bidder they aren’t going to buy it will stop them bidding, whereas a smile tells them they are paying too much and they will stop bidding. Neither is good so show no emotion, even after the property has been sold and your signing contracts, the buyer is nervous and thinking “did I over pay?”
Think it’s the end
- When an auction doesn’t sell, many owners will ask what did we do wrong, why is no one bidding, why is the price so low? Even with the auction clearance rates currently strong at 75%, there is still 25% that don’t sell on the day.
- Sometimes the right buyer just hasn’t come through and in the last 30 days that buyer just wasn’t ready. Many properties are sold after auction, so keep working with your agent and if you haven’t been doing so already; listen to the market because neither you nor the Local Property Expert can control that.