There’s been plenty of media commentary about how auctions have fallen off recently which really asks the question why?
The main reason it’s relative to the fall in the number of properties that are currently on the market compared to last year.
Human nature still dictates we want the best possible price for our greatest asset and in the quickest time so we can move forward with our plans.
There’s plenty of analysis that when a home first comes onto the market the most interest is within the first 3 to 4 weeks. If an agent prices the property too high buyers will simply walk away and look for something else. By negotiation can also put some buyers off as they don’t want to waste too much time doing their due diligence if the vendor is unrealistic with price expectation
Vendors will recruit an agent based on their expertise to get that best possible price for their home so an Auction strategy can be very effective in maximising the buyer opportunities in those first 3 to 4 weeks. The real challenge for vendors is choosing the right agent that can :-
Maximise the number of potential buyers through effective and innovative marketing
Ensure buyers are given up to date and correct information on the property as well as recent sales
The property has no potential issues that will affect the number of buyers attending the auction
Some agents will quickly want to take your property to market but they need to know what they’re selling. ie. Are there any consent issues? Does the swimming pool comply with the latest Act? The best agents will be able to explain buyer behaviour and how to make it easy for them.
We are still seeing good competition in the Auction rooms but only on properties where there are no potential issues and price expectations are reasonable. Buyers are more cautious in the current market so making sure you recruit the right agent that can deal effectively with buyers is key to getting the best price in the quickest time.