Preparing for auction

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Preparing for Auction.

preparing for auctionI recently prepared my home for sale with the intention of simply listing it for private sale.
I did all the work to clean, de-clutter, and polish it so it looked like a jewel. In fact, I did such a good job my agent told me there was no way he would sell the home unless it went to Auction.

Why ?– because it looked so good that people would crawl over themselves to try and buy it!

Well – perhaps not, but it would be a highly sought after home amidst a supply of reasonably similar offerings. It would stand out and become the logical choice for anyone wanting to move into the area.
Well, I hadn’t been preparing for auction – So what did I learn.

Be patient whilst preparing for Auction.

I had spent 6 weeks of daily work to prepare my home for sale. I’d done all the things I’d set out to do when preparing you home for sale.

  • Gardening
  • Painting
  • Carpet
  • Odd-Jobs

It was looking better than it had ever been. My task was complete. It was finished…
I knew from the current state of the market and monitoring some recent homes for sale that I would be able to expect a fair offer within the first 7-10 days and I could reasonably expect to have the home under contract within t he first 2 weeks. Mission accomplished……except NO.
I could now look forward to a 4-5 week marketing campaign with 1-2 opens per week. I could look forward to keeping the home neat as a pin for over a month. Oh, and that gorgeous garden that I’d just had primped and preened. Well, you’re going to have to keep mowing each week and pruning, and pulling weeds and picking up leaves.
And those cobwebs under the eaves, and that dust you just swept for the open. Look forward to doing this up to twice per week for the next 5 weeks.
And those offers that would tell you the buyers real perception of your homes true value. Well, they’ll be pretty slow and low. A few hardy souls may offer some cheeky suggestions, but they’ll be playing their cards pretty close to their chest.

Check out the competition

You need to keep an eye on similar properties going to market in your area. This will help you learn:

  • What’s your home really worth?
  • What would you settle for?
  • What is you reserve going to be?

It would sure be nice to know what the punters are willing to pay, but they’re not going to tell you. At least not to your face. But there is a way!
Follow-up all sold properties in your area. Look at the auction results especially. Compare the “suggested” price ranges such as “offers over xxx”
I have found that in my area price suggestions like “offers above” can point to a selling price at Auction of up to 20% more.
For example offers about $500k might realistically expect to sell at the $600k level. I also see that buyers become attuned to the level of “premium” that  is expected to be paid.

What can I do now?

Be careful of leaving your suggested price too low. If you’ve been doing your research during your campaign and see that comparable sales in your area are suggestive of a better price than you had initially expected, do not be afraid to communicate your expectation to your agent. It is then her job to manage buyers expectation when discussing your home with them and in the wording and pricing of any advertising.
My home is going up for auction this coming week and I’ve already made a decision that I’m happy to walk away from the Auction without a result if I’m not happy with the price. This might mean a higher reserve price than my agent would like, but it’s my decision. By communicating my intentions clearly and early it gives them a chance to adjust the campaign and tailor their approach to potential buyers in the lead up and the actual auction.
I’ll be back next week with an update.

Until next time,

preparing for auction

 

 

 

preparing for auction

 

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