* Updated on 10 February 2023
Selling your property at auction can be a stressful experience, both at the event itself and in the days or weeks leading up to the big day. But it doesn’t have to be that way.
Here are our top 5 tips to eliminate auction stress.
Tip 1: Do your research and choose the right agent
The real estate industry is like any other.
Some people who work in it are better than others. Make sure you take the time to find a good agent with the local market knowledge, experience and track record to help you through the process.
After all, the property that you want to sell at auction is probably your biggest financial asset.
These days, you can easily find plenty of information about agents via simple online research. And if you have any family or friends who have sold their properties recently, get their feedback about their agent.
If they’ve had a good experience, it’s likely that you will too.
Tip 2: Get some stress-free auction experience
The best way to do that is to attend some other auctions as a spectator. You’ll get to see how the process works, so that you’re better prepared for what to expect from potential buyers at your own.
Doing this will also help you to ensure you’re comfortable with the auction method as the best way to sell your property for the best possible price.
Tip 3: Set a realistic reserve price
Doing your research and having a good agent is important again here.
Talk to your agent and set your reserve price based on what comparable properties in your area have recently sold for. When you’re doing this, don’t look at your property through rose-coloured glasses.
Be realistic and look at it through a potential buyer’s eyes.
Tip 4: Make sure your property is as presentable as possible at all times
This tip applies whether you’re using an auction as the selling method for your property or not.
Invest some time, effort (and maybe some dollars) into your property’s presentation BEFORE you put it up for auction. That includes both inside and outside.
There’s an old saying that you don’t get a second chance to make a first impression. It’s especially true when selling real estate. Things like cracked or dirty tiles, peeling paintwork or an unkempt yard can be a real turn-off for potential buyers. So, prepare the property for a successful open house.
Be aware that potential buyers will be driving by or visiting for an inspection before auction day, so you need to always have your property presentable to increase your chances of getting the best possible price.
You might even tempt a potential buyer to make a pre-auction offer. If they do and you’re happy with it, you may not even need to go to auction!
Tip 5: Be physically and emotionally prepared for the day
It’s auction day! Being physically prepared means having everything you need on the day. For example, useful paperwork that buyers may want to see, like evidence of the dates that your property underwent any professional renovation work.
Being emotionally prepared means understanding that the auction could go one of two ways. One of those ways includes the property not selling, despite your best pre-auction efforts.
Have a ‘Plan B’. It’s not the end of the world if it doesn’t sell, there are other ways to sell and market a property.
You might also need to be emotionally prepared to negotiate with the highest bidder at the auction (via your agent) to get a sale, either on the day itself or in the days immediately following.
Think of these types of scenarios before auction, so you’re not making decisions on the day under pressure. Understand what’s negotiable for you and what’s not.
How many vendor bids are allowed at auction?
The number of vendor bids allowed at auction varies from state to state in Australia. In New South Wales, the seller is only allowed one vendor bid, and it must be announced clearly and precisely before the auction begins.
In Victoria, the seller is allowed up to two vendor bids, but they must be announced before the auction begins and must be spaced at least 10 minutes apart. In Queensland, the auctioneer can place unlimited vendor bids, though it’s rare to see more 1 or 2 used at any one auction.
