The auction option has fast become one of the most preferred
marketing strategies for Harcourts clients – with good reason. A positive
statistical sales rate together with property being on the market for such a
short time (on average less than 30 days) have many regarding auctions as the
most successful ‘non-price’ method of selling.
AUCTION = ACTION
The auction is designed to attract genuinely interested,
cash-in-hand buyers. These buyers are focused only on establishing the maximum
price they are prepared to pay – not how low their offer should be. As
motivation on the big day is often bolstered by emotional commitments towards
purchasing this also strengthens the natural form of competition between
buyers. The afore-mentioned ‘maximum price’ is also often open to
interpretation in the mind of the buyer. The buyer’s fear that they have
undervalued the property, and may lose out, often means that they will stray
past their limit. Bidding for a house is action-packed – and that’s all in your
favour. The auction is also the least disruptive and intrusive method. Your
home only needs to be opened at times that suit best and you remain in total
control of the whole process. With assistance from your Harcourts consultant
you’ll set the terms, conditions and auction deadline. The undisclosed minimum
reserve price is met - one you’re completely comfortable with. With your valued
input, a professional marketing plan will be put in place to ensure your
property gains the maximum profile within the first few weeks of market
exposure. With all this in place the excitement of the big day sometimes never
eventuates. That’s because you always have the option to accept offers prior to
The equation is simple. The auction works.
While price-marketed property offers buyers the opportunity to negotiate the purchase price, at auction they will be competing directly against other buyers. The purchase price is often a secondary issue compared with individual wants and needs, egos and emotions…..and the competitive will to win. Our commitment is to keep you totally informed throughout all stages of the auction marketing programme. Together we will work towards achieving the best possible result.
BEFORE THE CAMPAIGN…..
You’ll receive a copy of your advertising schedule. An information sheet containing all the relevant facts and figures will be made available to interested buyers. Your Harcourts auction team will suggest ways in which your property can be presented to the market. It will also be featured in full colour on our website and, depending on timing, in the Bluebook.
DURING THE CAMPAIGN…..
We conduct extensive database mailing and present and discuss with you a written weekly report on all marketing progress and sales strategy. All offers made on your property are presented for your consideration. Prior to the auction itself your Harcourts auction team will meet to help with the reserve price and discuss the auction procedure.
Do I have to be in a cash position to bid?
The straight answer is yes! To bid at an auction, you need to be bidding in cash. 10% only is required on the day of the auction, the balance is due on the possession date. However, as explained below, you may talk to the auctioneer about extending the possession date, giving you longer to arrange money. Also with an auction you may had a lead-up period of up to four weeks which should also allow you to get into a cash position.
How do I work out the price?
The auction system allows you, the market to firstly appreciate the house and then determine the price. We find as marketers, that some people literally become experts in a particular price range and they are able to indicate pretty well exactly what a home is worth. They do this by drawing on the experience of the homes they have looked at in that particular price bracket. If you need help with a guide to the price, ask the consultant for guidance. Whilst you will not get the actual figures or in a similar bracket that we believe indicate a reasonable price for the auction home. You may also decide to get a valuation.
What about selling my home?
One of the benefits of buying at auction is the fact that if the home does reach auction, you will have up to three months with prior permission from your vendors, to organise and get your own home sold. The fact that you own a home is not detrimental to your buying at auction. Talk to your consultant about whether they have somebody "waiting" for a home like yours as an early sale may be closer than you think. It's worth remembering other buyers will be in the same position you are, and if you get a cash offer on your home, you are in an extremely strong position to either buy the auction property before auction or on auction day. If you believe your home is "saleable" you may also consider talking to the auctioneer via your sales consultant about extending the possession date on the auction property, thus giving you extra time to get your home sold.
How do I borrow money when I don't know the price?
Most lending institutions are now conversant with the modern auction techniques and once you have worked out the price you the believe the property is worth, when you discuss this with banks or lending institutions, you will find they believe it quite acceptable to agree to lend you money up to a certain "bidding price". You will then know just how high you can bid at auction. Overall though, the fact that you are borrowing money should not prevent you from bidding or buying at an auction.