It’s finally time. The day has arrived and if things go well for you and your property, you might be hammering in that ‘sold’ sign out in the front yard.
Most people are more than happy to tell you what your house is worth, but when selling at an auction there is such a thing as ‘auction etiquette’. Here we’ll look at 5 things a seller should NOT be attempting on the day of their auction.
- Don’t mess about with the bidders
Experts say that homeowners should never intervene with bidders at an auction; especially if they’re genuine buyers. It can undermine the auction’s integrity and is likely to scare away potential buyers from making actual bids.
You don’t want to arrange for your friends to bump the price up by making bids without intention, or even bidding yourself. It’s just not the done thing. Most auctions with have conditions set so that there is a limit on how many times you can bid on your own lot. Normally this limit is set at two bids.
- Don’t tell your friends what you’re planning on selling for
Yes it can be tempting, but you should withhold the desire to tell your mates about the price of your property. Especially on the day of the auction. If you openly reveal your expectations or the reserve price, it can lead to rumours. Agents agree that rumours can scare away potential buyers, especially if your expectations are above what people are willing to pay.
- Don’t expect too much
It’s great to be positive in your expectations, but expecting too much can lead to being greedy. Sellers don’t want to hear this but the only thing that stops a property from selling at times is the price. Anyone selling a property at auction should pay attention to pre-auction pricing estimates and get thorough feedback from their agent before going ahead.
- Don’t lose yourself in the moment
Auctions can be stressful – especially if they’re not going your way. Don’t worry though, this just means you’re moving into the next stage of the auction campaign; it’s not game over just yet.
People think that if you fail to sell under auction then it’s a disaster, but this isn’t true per se. We find that many properties that don’t sell under auction end up going for a high price in the end, following a few more weeks on the market. The best approach on the day is to just hope for the best but prepare for the worst – then you can never be disappointed.
- Don’t put your home back on the market too soon
At auctions many properties pass on to the highest bidder, who has the right to negotiate before anyone else. There’s no need to announce the property on the market whilst you’re still at the auction house. That is unless it has reached its reserve price and the bidding is still going strong.
When negotiating with the highest bidder it’s key to remember that they have the right to meet the seller’s reserve price of in the best case, the high ball price. Most of the time negotiations meet in the middle. Don’t let your agent condition you into thinking you need to accept an unsatisfactory offer after a disappointing auction.
As a seller don’t forget that you hold the ‘trump card’. The signature on the sales contract is your own, not the purchaser’s. So the sale is only ever complete once you’ve signed over the property.
For more assistance and advice about selling your home at Auction, speak to your local Ruralco Property office, they will be only too happy to help.
The information and links provided on this website are for general information only and should not be taken as constituting professional advice. This information does not take into account the financial situation or particular needs of individual readers. Before making any decisions about matters discussed on this website, you should consider whether it is suitable for you in light of your own circumstances, and seek appropriate advice.