Useful Auction Documents
PHASE 4 – Pricing
This is when the property has not sold before, on the day or shortly after the Auction. This is when the property gets priced.
- Property now goes on the market at a price that has been researched from buyer feedback.
- Property hits the market after 4 weeks, is market fresh and is at the right price and usually attracts an offer within a few short days or weeks after the Auction.
- The sellers then have the option to rent, wait, or align price with buyer feedback to get the property sold.
- If there is no sale, then the only reason is because the seller has not met the market/the market has not met the seller’s expectation.
- “Passed in at $950K” until price has been established.
- Be positive/focus on result/believe in the process
Advantages For Buyers
- Buyers get four opportunities to buy the property: prior, on the day, shortly after or when it hits the market at a price.
- Buyers get to decide where they are comfortable bidding to and they get to see what others are prepared to pay. They know they are paying a fair market price.
- Negotiation is transparent to all on Auction day.
- Vendor bidding helps buyers get to the reserve and also helps them understand where the sellers will look at offers.
- Buyers know they are dealing with a motivated and committed seller.
- Buyers can plan, knowing the terms of the contract.
- The contract is unconditional so sellers can’t pull out.
- Buyers are able to witness true market value as opposed to an unrealistic vendor price.
- Free coffee!
Advantages For Agents
- Point of difference.
- Profiling paid for by the seller (usually big $$$ if you’ve done your job correctly).
- Opportunity to grow your database through more people at home opens and crowds on the Auction day.
- Pre-booked marketing campaign, better organised.
- You look more professional having another dimension to your business.
- Shows commitment, working harder for the seller than the average agent.
- You have control as buyers usually initiate conversation wanting to know details about the Auction. If the property has a price, there is no need to engage the agent.
- Four definitive opportunities to get offers/close buyers.
- Adds confidence and great experience in your negotiating.
- If it sells under the hammer you look like a super hero.
- Buyers/sellers/neighbours can see you doing your best, and more than the average agent.
- Paid quicker.
- Unconditional contracts, no building or termite inspections for YOU to organise or deal with, no chasing banks, brokers, valuers, no more stress or waiting for finance to come through. No more FINANCE FALL OVERS.
- Usually 30 day settlement.
- NO CONJUNCTIONS.
- Use of Auctioneer to be bad cop/3rd party.
- Show off your teamwork.
- Motivates/educates sellers on market price.
- Get away from price reductions, the process does it all for you.
- Good luck becoming a successful auction agent. When in doubt call Auction Services WA.
Download “A Handbook For Agents“