What to expect from an auction
Putting a home under the hammer is common in large cities, and Sydney is no exception. It’s a great way to sell a home as it gives you a clear-cut schedule and end date to work towards, and with clearance rates so high, you can be confident that your property will sell on the day or shortly afterwards, and you can move forward with your plans.
An auction is a particularly good way to sell when there is a lot of pent-up demand or when it’s in a sought-after area – which the Lower North Shore certainly is.
But how does the process work, and what can you expect on the day? Read on to find out what happens during a sale by auction.
Before the big day
In conversation with your agent, you’ll set a confidential reserve price. This is the price at which the property will sell, and it will be determined by the market and the bids your property receives on the day. You need to set a reserve price that you feel comfortable with, knowing that any bids over it will be a bonus. Your agent will have an idea from buyer conversations about where this price is likely to sit, but you can still be surprised on the day with new bidders turning up and driving the price higher.
It’s not uncommon for bidding wars to begin before auction day. In fact, some sellers will choose to agree on a sale before the day itself. Buyers who wish to avoid an auction and lock in their sale will often come up with a tempting offer, which is great news for sellers.
What happens on the day?
Auctions are exciting and a great way to sell – there’s something about them that creates a sense of urgency and encourages competition between bidders. Instead of starting with a set asking price, which can be driven down by buyers, an auction typically sends the price higher.
Buyers are pre-approved and will bid knowing there is no cooling-off period should they win the auction. This gives sellers a lot of control and confidence that there is no chance of the buyer pulling out at the last minute – if it sells, it sells.
At Home Property Agents we like to create a sense of occasion on auction day to make buyers feel relaxed and comfortable about bidding. Often we’ll organise a coffee cart, and the neighbours will show up to watch, adding to the atmosphere. We’ll also ensure that our targeted marketing plan delivers bidders on the day to ensure healthy competition.
In the unlikely event that the property doesn’t hit the reserve, we will begin negotiating with the highest bidder and agree on a sale price shortly afterwards – at this point, a sale can be agreed upon very quickly.
Is an auction the right choice for you?
Here at Home Property Agents, we have guided sellers through many auctions and have a thorough understanding of the Lower North Shore, the wider area, and its buyers. We can advise you on what the market is doing, help you set the right reserve price and ensure that you achieve the most successful outcome.
Selling a property is a significant financial decision and the right strategy can mean a difference of tens of thousands of dollars or more. Always do your research – you need to feel confident that you are making the right decision, and that you are getting the appropriate guidance and support from your agent.
As the spring market picks up, we are looking forward to more successful auctions – please give us a call if you are thinking of selling and would like to discuss your strategy.
