3 Actionable Tips for Selling Property at an Auction
Once you have decided to sell your home, maybe you are upgrading or you are just finally moving on, the next thing you need to do is decide how to go about it. You have quite a number of options here including using experienced estate agents, going it alone and selling it an auction. Every single one of these channels has its advantages and disadvantages.
Using an estate agent, for example, takes the entire process out of your hands and presents less stress but you will have to part with a good percentage of your earnings in the form of commissions. Going it alone, on the other hand, involves an extreme amount of busy bodywork on your part but at the very least you will not have to pay out a hefty commission to an estate agent.
Out of all these avenues, one of the best ways involves the use of an auctioneer. Selling your home at an auction brings with it numerous advantages. For starters, you could very well get much more than you would have otherwise settled for, you have a specifically set date for the sale of the house as opposed to going on numerous showing trips with no success and you get to advertise your home for a very predetermined and short period of time.
The question then comes in, how do you successfully sell your home at an auction?
Find the right estate agency to work with during this period
Like every specialised field, selling at an auction has people who are really good at it. You need the right kind of experience and connections to succeed in such a world. Luckily enough, making the right connections here does not involve human sacrifices and blood oaths. All you have to do is find the right estate agency to deal with during this period. Use someone who has the experience selling in your location and someone who has successfully sold homes of your calibre at previous auctions. Try to attend some of their auctions just to get a feel of the way they operate and see just how much money people who sell through them make.
If you’re unsure of where to start your search, try attending property investors’ networking events like the PIN Meetings of Simon Zutshi and the We Buy Houses Community Meetups of Rick Otton. These are monthly events that can allow you to talk with fellow investors who could know trusted agencies that assist people selling houses at an auction. The best insights are usually from first-hand sources.
Set a realistic reserve price
This has to be the number one reason why most houses that do not sell at auctions fail. Unrealistic reserve prices tend to go unmet. If you do not set a realistic reserve price you will find that your property will be passed in at every turn. Although this figure will be kept confidential, it is advisable to choose a reserve price with which you are comfortable, just in case.
Determine how far the estate agent can take the negotiations
Just because your house is being sold at auction does not mean that it will sell. Sometimes, this process involves a great deal of going back and forth with bidders and potential clients. In case things do not go as planned and your envisioned price is not met, how far can the estate agent take the negotiations?
What authority do they have to sell or not sell the house at non-favourable offers?
Sometimes, you will find that the highest offer you get is not the figure you wanted, but it is better than nothing. In this case, you need to sign a contract with the estate agent stating just how low they can go when trying to sell the property.
The good thing about selling at an auction is that even if the house doesn’t sell immediately, all is not lost. At this point, your estate agent will have gathered qualified leads of interested parties based on their bidding. With follow up calls and further negotiations, you may just very well sell that house even after the auction.