Recently a local independent agent in the area I reside listed what is probably one of the best homes to come onto the market this year. The agency whilst successfully established long term had been struggling for market share against other franchised competitors. The property listed for an auction after a four week marketing campaign. The property went to market 2 Saturdays ago and lo and behold, a sold sticker went up in the middle of the first week post the first Saturday open. Now whilst I admit I’m not privy to the background circumstances I must admit I shook my head in disbelief at the missed opportunity for both the owner primarily and the agency secondly. Surely if a dynamite buyer came through in the first week then there would be more as the campaign progressed and culminated on auction day?
Here’s my thinking on going through to auction…
- We are at the tail end of the strongest boom in Sydney for generations.
- Whilst there are some cracks in certain parts of the Sydney market, the local market is incredibly strong with a huge shortage of stock still the preeminent driver.
- The property ticked the boxes for a lot of buyers (it was on a reasonably busy road but in a market like this, this seems to make little difference).
- You need to allow the owner to sleep at night, knowing they have exhausted the market. You simply can’t do this in 5 days after one open for inspection………
- As an agent, given the nature of the property, you get a HUGE one off opportunity to put on a show, meet the neighbours and others curious about the market on the day, demonstrate clearly that you are capable and make a song and dance about it. If you sell It in week 1, what do you have, a few sold flyers in letterboxes and a sticker on a board.
What are the risks of going through to auction day?
- The buyer says they won’t go to the auction? Really?? This particular property hasn’t been offered for sale in the 20 plus years I’ve lived in the area so because it’s an auction they say they won’t attend and buy it? Don’t think so…. 90% will and I know what my family would say, if it was our dream home.
- Save marketing costs? In the scheme of the $ 2 million or so the property would have sold for, it’s a drop in the ocean to give everyone comfort.
- Worst case scenario, it doesn’t sell and then what? You go to market at a price which often opens the opportunity to other buyers who weren’t in a position to attend that auction. In a market like this, rarely will you achieve a lesser price than you were offered during the campaign.
So, standing here in the market that is on offer in Sydney in August 2017, it’s a massive NAY for me, the benefits of going to auction simply eradicate the possible negatives of doing a deal pre-auction.
