If you’re selling your house by auction, I’m betting there’s a niggly wee question nagging at the back of your mind… ‘What if it doesn’t reach reserve?’
For many sellers, the prospect of passing in at auction is downright scary – quite honestly, it shouldn’t be. In fact, it might surprise you to learn that only 35-40% of all houses that are auctioned actually sell under the hammer. So if you pass in, you’re in good company.
In days gone by, vendors worried that a house passed in at auction would acquire a reputation as over-priced and be destined to languish on the market. Fortunately, those days are well and truly in the past.
If your real estate agent is worth their salt, they’ll have worked with you upfront to agree a reserve price that is a fair and accurate reflection of the current market, using recent and relevant sales data for your street and suburb. Assuming this is the case, there’s really no reason to settle for a lower figure.
Come auction day, the best real estate agents will counsel you to stick to your guns and won’t let you buckle if bidding stalls. Sadly there are still some in our industry who encourage clients to settle for less. This kind of advice can be difficult for vendors to go against if they’re stressed out by the auction process; always remember that if your real estate agent has done their homework before helping you decide your reserve, they should never advocate reducing it mid-auction.
In my opinion, getting the best out of the auction process requires the following:
- A real estate agent who will work with you to decide a fair reserve that is backed up by recent and relevant market data.
- A commitment to stick to your guns on auction day. If you’ve based your price on good market data, there’s no reason you shouldn’t achieve it.
- An open mind – consider auction day the first step in the process to achieving your desired sale result and be open to negotiating.
Above all, remember… in today’s market, there’s no shame in passing in!
About The Property Market
The Property Market is a full service real estate agency built to deliver a better experience for buyers and sellers. Think real estate, only reinvented.
- Our Ponsonby real estate agents operate within a 20 minute radius of Freemans Bay.
- Our real estate agent commission rates are innovative and competitive.
- Our focus on customer service is second-to-none.