- Posted 16 Feb
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If you’re trying to sell you’re house by auction, you’ve got plenty on your mind. With all the concerns at hand, the main one is probably, “What if we just don’t sell our home?”
The reality is, almost 30% of all properties for sale in Australia do not sell. What do you do if you find yourself in this situation?
Consult Your Team
If your home doesn’t sell the first time round, talk to the auctioneer and sales team that you’re working with. Try and get some feedback as to why the property didn’t sell. Find out if your team was able to gather any information from the potential buyer’s at pre-auction.
See if you can find out specifically what the concerns were from each potential buyer that showed interest during the campaign. You might be surprised to learn that the auction actually wasn’t a total failure—that there was serious interest, but buyers just weren’t able to buy for one reason or another.
Sometimes it’s as simple as the fact the the buyer couldn’t get past the binding sales conditions presented at auction.
Find out why
Most properties don’t sell because either the asking price or presentation was off. Was your price too high? Again, consult your team.
If the seller (that’s you) sets a reserve that’s too high, the bidding can be negatively affected and the auction could fail. You may need to think about reducing your price the next time around.
As far as presentation, it’s critical that the home’s price reflects the perceived value. If you’re selling a 2-bedroom house, you can’t price it as a 4-bedroom family home. You must realistically assess the value of your home, staying as objective as possible. Your real estate agent is the best person to help you achieve this. Focus on the market, not what you feel the value of the home might be.
Was there anything that stopped people from bidding?
You need to know the reality of how you’re home fared in the market. If there’s a third bedroom with no closet, this could affect the will of a buyer to make an offer. Be aware of any feature of the home that may not be as appealing as you think and then adjust accordingly. It might require you to make small, cosmetic changes before putting the house back up for auction again.
Stay On Course
If the property doesn’t sell, don’t switch agents immediately. Your agent is the expert in this situation. She may not have been able to make a sale on the first time at auction, but she is building relationships. It may take a few times before she gets you an offer.
Most agents work a 60-day campaign, and they really do need that time to make a sale happen for you. Be patient, and allow the agent to work the campaign for the full duration.
In the end, you need to keep a positive perspective. If your property doesn’t sell the first time at auction, take a deep breath, get feedback, and give it time. Know this—most properties sell within two weeks of a failed auction. The odds are in your favour!
If you’re ready to put your house up for sale or need help with sourcing funds to make cosmetic changes to your home to meet market demands, contact our team today to discuss your options.