Selling by auction can be stressful, but there are several things you can do before auction day to alleviate some of the stress. Mostly you want to make sure your buyers will be fully prepared to bid and buy property. Having buyers who are qualified and confident will help assure that properties receive the very best sell price possible.
Communication with your buyers and sellers is vitally important, and you need to dialog with them well before the auction. You can help buyers decide how much to bid by making current pricing information available to them. In many states and countries there is legislation in place that limits what you can and cannot quote, and you need to know what your local legislation involves, but you can certainly show buyers examples of properties currently on the market and what they are selling for.
You can also explain the auction process, make sure buyers know what is required of them before they can purchase, and help them through the steps they need to take in order to be financially ready before auction day. That would include seeing their mortgage broker, having their deposit in place, knowing the terms of the deal they are interested in, and being registered to bid if that is required.
Another bit of information you can use yourself is to find out who has requested copies of contracts to be sent to a solicitor for review. As this involves a substantial fee, you know a buyer is interested in a property if they have made this request. Overall, if you know your buyers are fully prepared, then you can feel confident that they are serious and will actually show up and bid on property.
One decision you have to make is when to actually sell the property. Sometimes it is in the best interest of the customer to sell before the auction depending on offers you may receive on the property. If no one is showing interest in a given property prior to the auction, then it might be best to put the property on the market. Then again, if you know there will be multiple bidders for the property it might be best to let it go to auction. Your own experience can help you judge how quickly you think you could sell that property in the marketplace, and whether sending it to auction might result in a faster sale. And you can always consult with a specialist to help you make that decision if you are unsure.
Thank you for joining us for today’s Coaching Tip. We hope to see you here again next week!