An auction is a highly recommended strategy for selling your Mosman home. By generating competition between buyers, hosting an auction will help improve the final selling price. This tactic also puts a firm end date to your sale campaign, allowing you to plan your next move.
Some homeowners avoid auctions because it makes them nervous but with the right preparation you can be more confident of a successful outcome.
Take the following steps to be ready for auction day.
Market your Mosman home
The amount of attention your property generates prior to auction will have a strong impact on the final price.
Work with your agent to have your home in impeccable condition and presented beautifully in time for photos and open day. The right agent will leverage his or her contact database to ensure a number of potential buyers show up to view the property. When they arrive, they will see how much competition they are facing and start preparing to bid high.
Once the hammer goes down, the sale is final so your marketing campaign needs to allow time for buyers to organise their finances. Your agent will talk you through timelines based on current market conditions and the ideal dates to hold your auction (avoid school holidays if possible).
Your marketing should include an eye-catching sign board, newspaper and online advertisements and listings on overseas websites, plus a mailcard drop if your agent believes that will draw in more buyers.
Secure your auctioneer
Hosting an auction is a precise skill and some auctioneers are better than others. Speak to your agent about who they recommend and why.
Your auctioneer should be well-prepared, confident and able to squeeze out those extra bids.
Make sure they are informed of your Mosman home’s key selling points and check the commission or fees involved with their services before you commit to using them.
You may even wish to attend an auction to watch your auctioneer in action and see how they encourage bidders to keep raising their hand. Have a conversation with your auctioneer about their process so you’re not surprised on the day. They will also need to get to know your preferences as the seller and fill you in on important details.
Go over the details
Your agent and auctioneer must be fully informed before the auction on the reserve you wish to set, so have these discussions prior to the event.
Work together on a plan which covers the itinerary, how you expect to communicate with each other and where you will be while the auction takes place. It will also be helpful to go over details including how many are expected to bid, how any vendor bids will be used and what will happen if the reserve is not met.
Your agent may also request you confirm that neither you nor anyone you know will be placing what’s known as ‘dummy bids’ to push the price up. This is considered a crime by Fair Trading NSW and can result in fines of up to $55k.
Don’t forget the pre-auction inspection
Buyers who show up on the day will be on the lookout for any excuse to reduce their bid so your property should also be at its best immediately prior to auction.
Get the cleaners in and have your place looking like a show home to remove all doubt from your buyers’ minds that they simply have to own your Mosman home.
After the auction
It is common in Mosman for homes to sell above the reserve. Over the past three months, a unit sold for $51k over reserve, while a four bedroom home listed for $3.7 million ended up going for $4.55 million.
Should your home pass in, the highest bidder has the first right to negotiate. Your agent will take over from the auctioneer to find out from bidders and other interested parties what was holding them back and encourage them to make an offer. Often, a private sale can be quickly achieved on the same day if a home doesn’t sell at auction.
