It's crazy to think there's a 35% chance you won't sell at auction. I mean, you've prepared the home for sale, picked the best agent (not the cheapest) and you are 4 Saturday's away from slapping up a sold sticker on the oversized signboard out the front.
Auction clearance rates are sitting at 65% (March 2024), the media is talking about possible rate cuts later this year and everything is looking up. So you wonder why the heck wouldn't you sell on auction day right?
The truth is that there are only 2 important factors that will test you as a homeowner. So here are the real reasons why you won't sell at auction.
Your Expectations We all want the very best price for our property, I do too, but the best price is never achieved by having unsubstantiated expectations. By this I mean it's important that your price goal remains fluid. Just because you had 70 people through your doors at the very first open house, it doesn't always mean you can increase your expectations. Buyer feedback is only 48 hours away and this is when you will be told the truth, well, as close to the truth as the buyer is willing to go. When your agent calls you on Monday night to provide you with feedback, it's time to listen openly and establish if you can do anything about the concerns raised by buyers or they are areas out of your control. Don't defend your position or imply that the agent didn't do everything they could to change that buyers perception, because I know that every agent in the world wants people fighting over your property so they can successfully sell your home. Understand there are factors that are out of your control like location, aspect, outlook and sunlight that are appreciated or disliked by each and every individual buyer in their own unique way, but, you will start to hear repeated comments from the majority of buyers and this is the feedback you need to understand and listen to the most. I know you have loved where you have lived, but your agent can't sell the home back to you and it's hard to find another you. So when it comes to your expectations, the higher they are, the more objections (or negative feedback) you will receive. The lower the price, the more accepting buyers are of these uncontrollable factors. A good agent will respond quickly to the feedback and suggest a pivotable move to reposition you in to a more desirable price bracket for buyers so they can create the required competition that will increase your final sale price on auction day.
Your Agent Im sure any agent reading this will scoff at the thought, but every agent will admit they know of an agent that doesn't do the right thing by their client. Not doing the right thing doesn't mean they don't want the best for you, they do, it means they are not willing to have the hard conversations with you straight away. The best agents will tell you if your price is too high as soon as possible. They won't wait until week 4 and 2 days before auction to break the news. A great agent will tell you the truth about your grandmothers 12 seat dining table consuming the second living area while your dining room is the work from home space has to change. Remember you're not employing an agent to be your friend or to agree with your opinion on how to sell your home. You are employing the best real estate professional to help you prepare, navigate and execute the best sale outcome within a reasonable timeframe. If you do employ the wrong agent, don't stress, be proactive. Ask your agent the right questions to get the real answers. Be prepared to receive the news you don't want to hear and establish a plan to move forward. Don't ignore the situation and hope the right buyer comes along, because hope is a last resort!
It's important to remember that an individual real estate agent's auction clearance rate can be very different to the Sydney clearance rate. While Sydney sits at 65% currently, many of the agents i work for are selling almost 95% of there listing before or at auction. So before you say you wont sell via the auction method, speak with your agent about the vast benefits for homeowners Vs private treaty.
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