What to do if your house doesn’t sell at auction
Media reports are rife with news about the market slowdown, lack of buyers, poor auction results and in some parts of the country a 15-20% auction clearance rate only. Indeed auctions are not achieving the desired results – in many cases. But what if your home doesn’t sell under the hammer? There’s no reason to lounge in the pit of despair. Place emotions to one side and let objectivity take centre stage. Here are 5 tips on how to make a successful post-auction sale.
Don’t panic! It may only be the day after the auction and your fingernails have already been bitten to the quick, but remember a high proportion of auction properties end up selling through negotiation in next 2-3 weeks or so after auction day. Your perfect purchaser may not have been in the financial position to bid at auction, or another buyer may have just missed out on their dream property, so with a bit of patience, the sale of your property could take place sooner than you think.
Debrief with your agent Sit down with your agent and delve into what feedback they were given at open homes and viewings. Ask them if there were specific features of your home that may have stopped people from bidding. Also ask them to write a short list of potential buyers who may not have been in a position to buy at auction and approach them as a priority to see if they are still interested and able to purchase by negotiation. Get the P’s right - price Two of the most common reasons for a property to be passed in is that the price is too high or the presentation needs work. Let’s take a look at price first. This is the time where you need to be completely honest with yourself. Were your price expectations simply too high? Like the optimism associated with buying a Lotto ticket every week, all vendors hope their auction result will be the one to break all records. Our advice is simple – get realistic! Bring your pricing expectations in line with what the market is prepared to pay. If you didn’t do this when deciding a reserve price, check recent comparable sales in your area and property type and compare these against the CV to gauge the market. Recent means in the last 30 to 45 days as prices change quickly in the current market. It could mean making the hard call that your reserve was simply too high and you need to reassess the price. Get the P’s right - presentation Beauty is in the eye of the beholder, so even though you adore your lime green carpet, others may not be so enamoured and the cost and hassle of re-carpeting may put off the perfect buyer. If there is a game changer for buyers that is relatively easy to fix, like adding storage or clearing your forest of a back section, now is a good time to commit to doing this work. And if there was anything your agent recommended doing before the sale, it might be worth revisiting this advice. Telling interested purchasers that you’re doing this work could turn them from luke-warm to piping hot. Re-assess your marketing Although you probably don’t want to throw any more money into the marketing pot, a few simple changes could enhance your chances of a sale. Get your hygiene factors right, like changing the internet listing to reflect the property is now for sale and communicating this fact to your agent’s buyer database. If there’s a realistic price you have in mind, be upfront as a buyer could realise it is now within budget or pull out all the stops to find extra cash. Your agent will already have analysed which marketing brought in the most qualified leads, so rewind and repeat this tactic. Swapping out the hero image on your marketing and writing refreshed ad copy could attract different buyers or reignite interest in others. Finally, don’t take drastic action and immediately look for a new salesperson. Your agent now knows your property like the back of their hand and will have a qualified idea of the target market and what promotion and price points will work. Be patient, follow the steps above and you’ll be fixing that sold sticker onto your property sign in no time!