With auctions on the rise across Perth, homeowners have been taking advantage of the opportunity to sell their property in a competitive environment.
Sellers want to get the best possible price on their property, especially on auction day, but what mistakes might hinder their chances of a smooth-sailing sale?
Realestate 88 Inner City Sales Executive Michael Adams said a common error sellers were making was trying to control where the bidding started, which took away the biggest advantage of holding an auction.
“A mistake sellers sometimes make on auction day is they will set their reserve price too high – above where the market values it,” Mr Adams said.
“This can prevent buyers from starting the bidding where they feel comfortable and may lead to no, or few, offers being tabled that day.
“Setting a reserve price means that your property will not sell for less than you are comfortable selling it for and, in a strong market, you may find keen buyers are willing to pay above market value,” he said.
Realmark Coastal Sales Associate Jon Wood said not listening to outside influences would hold sellers in good stead come auction day.
“Heading into auction day, sellers should have a clear idea of where the interest in their property is from their agent,” he said.
“You should have a clear reserve price set prior to the day – don’t allow this to be influenced by friends, family or neighbours.
“Outside influences can often give incorrect price and expectation feedback to owners.”
Another mistake sellers can make on auction day is moving the reserve up due to nervousness, with Mr Wood saying to listen to your agent for the best advice.
“Set the reserve the day before and stick to it,” he said. “If you hit the reserve during the auction, it’s a great tool to inspire bidding when the auctioneer announces that the home is on the market and will be sold.”
Mr Adams said having an open line of communication with your agent would also help with having a realistic view on auction day.
“When lines of communication between the seller and the agent have not been made clear, they may form their own ideas and this can lead to disappointment or unrealistic expectations,” he said.
Mr Wood said there was always more than one opportunity to sell your property.
“Most people don’t know that, with an auction campaign, there are three opportunities to sell your home – before the auction, on the day and after the auction,” he said.
Mr Adams supported this statement, saying presentation and good marketing is key.
“The more eyes you can get on your property through a strong marketing campaign, the more interest you are likely to get – you can’t sell a secret,” Mr Adams said.
“Presenting the property in its best light will ensure buyers form an emotional connection to the property, which will result in a higher sales price.”