The misconception of an auction
When you hear the word auction, if what you think is big crowds, high stress, bidding wars, the hammer falling, a sold sticker and photos of an agent with buyers and thumbs up, well you’re not completely misinformed. But that’s only one day of the whole process. What most people don’t think about is the months of work prior to prepare for that one day.
Auctions are an amazing tool for a seller. They draw larger crowds to a property, they show great motivation from sellers, which in turn, motivates buyers to perform and they keep you, as the seller, in the drivers seat as everyone needs to do all their due diligence prior to buying as an auction is an unconditional sale on the day. the best part of an auction is that it brings everything to a head and draws out interested parties in a shorter period of time than the other methods.
The biggest misconception with auctions is the added pressure. The only reason why you would feel added pressure with an auction versus any other form of sale is because all your hopes are set on one day or you’re not being communicated any feedback throughout the campaign. An auction like any other sale is a process, it’s more than just one day. In most cases, it’s four weeks, of which every day up to the auction day is like a private treaty and the property can be sold at anytime. It also doesn’t mean that your property will be sold on the day of the auction, before or after. The main objective of an auction campaign is to draw out interested buyers in a more timely fashion. Not only does this help with selling a property, it also provides more feedback for owners to get their head around where their property sits in the marketplace.
So here is the most important factor of what you need to get out of the process. Ensure that your agent is telling you everything that is going on. In order for this to happen, they need to follow up every single buyer that walks through the door and not just ask if they’re interested in buying. They need to ask what the pros and cons are, what they think it’s worth, are they cashed up and ready to buy, and a bunch of other questions ensuring they draw out the most relevant data to give back to you, for you to make informed decisions. One of the biggest problems these days is that agents have become so complacent that they do not even follow anyone up.
So what is all this feedback going to do for you? Well, at least at every point of the campaign of selling your property, you will know exactly where you stand. If you have a constant flow of honest feedback, whether you like to hear it or not, then you can make informed decisions about which direction your auction will go. After four weeks and multiple buyers worth of feedback, you can make the right decisions for yourself to move forward. That doesn’t necessarily mean that you will sell, it means that you can rightly make the decision on whether you choose to sell or not.