Auction Day Tips for Sellers
Auction day jitters are just as real for the seller as they are for the buyer. These are the tips every seller needs to feel at ease come auction day.
One of the most popular ways to sell property is via auctions – they create excitement and drive up competition, and more often than not, can result in a higher sale price. Weekend news reports are filled with them, letterbox drops rave about them, and watching a live in-person auction is a whole lot of fun. Yet still, when you’re the one selling, it can be anything but.
Whether it’s your first time selling property or your tenth, auction day jitters are real. It’s normal to feel stressed, overwhelmed and anxious during the lead-up and on the day. Knowing what to expect from an auction and having a good working relationship with your sales agent and auctioneer goes a long way to feeling more confident in the process and the result.
To help you feel more at ease going into your auction, we spoke with the NSW Chief Auctioneer for Belle Property, Andrew Robinson, to get his auction day tips for sellers.
Before auction day, what to expect
Doing your research and engaging a local sales agent who is highly experienced with the auction sales method is vital. Not only will they know the market, but they will also know the importance of a comprehensive marketing strategy and the need to drum up excitement and anticipation.
“The success of an auction depends largely on the marketing strategy leading up to it,” explains Andrew. “A thorough advertising campaign is an absolute must because the more people who know about the auction, the more who will register to bid.”
Your sales agent will work closely with you throughout the campaign, ensuring your property is looking its best for the series of open homes, talking with potential buyers, getting their feedback, and keeping you in the loop on how the campaign is progressing.
The day before the auction, your sales agent will meet with you, often on their own and sometimes with the auctioneer. Together, they will talk with you about the schedule of procedures, pricing expectations, reserve price (the minimum figure you’re willing to sell your house for), bidding increments, the number of expected bidders, vendor bids and what will happen if the reserve is not met.
“Your sales agent will also advise when and how you can communicate with them during the auction. They’ll be busy working the floor, encouraging bidders, so knowing how and when is appropriate for you as the seller to communicate with the agent ensures smooth running on the day,” says Andrew.
Auction day, what to expect
Your sales agent will open the home for a final inspection at least 30-minutes before the start of the auction. The agent is also required to display mandatory rules and information in a prominent location for potential buyers. In most states, potential bidders must register before the auction starts to get a bidder’s number.
Andrew explains that before the bidding starts, the auctioneer will introduce themselves and the agency they represent, make legal announcements and describe the features and benefits of the property.
“The auctioneer sets the expectations for what bidding increments will be accepted, but bidders can offer any amount. If an auction is slow to get moving, a vendor’s bid can be used to encourage bidding,” says Andrew. “After the bidding has hit the reserve price, the auctioneer will drop the hammer when the highest bid has been made and will declare the property sold. If the property does not sell, then the auctioneer will ‘pass in’ the property, and the auctioneer, alongside the sales agent, tries to negotiate a sale with the highest bidder.”
Top auction day tips for sellers from an auctioneer
- Work with your sales agent and auctioneer. Their advice and experience are invaluable, so utilise them to your advantage.
- Auctions start with an open for inspection to give potential buyers an opportunity for one final walk through. Ensure the property looks its absolute best, inside and out, drawing attention to the home’s key selling features.
- Your sales agent will talk with you about setting a reserve price, be realistic and listen to your agent. Bidders can get discouraged if the reserve is too high.
- Attend the auction. If the reserve isn’t met, the person with the highest bid gets the chance to negotiate a sale with you. If you watched the auction, you would already know how invested the bidder is and the level of competition.
- Once the property is sold, stay out of the way until the purchaser has signed the contract and paid the 10 per cent deposit. Once complete, you will be invited to meet with the purchaser and share in their excitement.
For more tips on auction days for sellers, speak with your local hockingstuart agent.