Auctions are fantastic. They provide a potential seller with a chance to ramp up competition, and increase the sale price. You also, all things going according to plan, have the peace of mind of a set resolution date.
However, sometimes all things do not go according to plan on auction day. The price you were after may not be offered. Not many people may turn up after all. An agent’s job, first-and-foremost, is to manage their client’s experience. An auction process can create a lot of anxiety for the seller. Another option may be being open to offers before auction day.
Keeping that in mind, here are three reasons to sell before auction:
- Most auctions sell up to $100,000 above reserve. If an agent receives an offer that is more than $100,000 above reserve, it is probably a good idea to take this offer. This may occur in a market where there is low stock and high demand, like we have seen over the past few months.
- You may receive better terms with an offer than you would with an auction, for instance; a longer settlement, or other inclusions or exceptions.
- Scheduling. You have an inspection and you find some buyers who you think will be very keen come auction day. But, the hot buyers looking at the property have an auction before yours. So you let them know you are open to offers and see what comes your way.
- Competition is key at an auction, but what if there was minimal interest? If there were only two hot buyers interested in your property, you may not be able to drive up the price under the hammer.
To highlight the benefits laid out, the following is a case study of a before-auction sale carried out by an Avnu agent.
Our Avnu agent negotiated the sale of a classic semi with a north-south aspect in Mosman before auction date. They took this action due to the good level of buyer engagement in the lead-up to its auction date. This engagement led to 11 contracts being issued and an offer that was generous enough to consider, avoiding the stress for the client of going through the auction process. In the end, the property sold comfortably for a price well within the guide of $2,200,000 to $2,400,000.