Recently I was at the Madeleine Hicks Real Estate National Elite Retreat where the elite of the elite met to discuss the current market trends.
In the changing market it was a consensus amongst the group that auctions were the best marketing strategy. This is not my view.
I only auction unique properties or when I am instructed to auction e.g. mortgagee in possession.
Auctions are a seller’s worst nightmare. The seller losses control. Notoriously buyers come in low and if there are only one or two buyers on the day the seller is pressured into making a decision there and then. The buyer is expecting an answer, the auctioneer is waiting, the agent is waiting, the crowd is waiting, the neighbours are waiting, and the seller is panicked – forced into making decisions.
Recently I went with a friend to another agent’s in room auctions to help them through the auction process. My friends were keen to buy. I gave them some auction tips, we were one of two interested parties, and we were able to slow the auction right down. The auction stalled the agent came across and asked them to increase their offer. I advised them to hold fast.
The agent then went and spoke to the seller. Reading the non-verbals I could see the pressure mounting around the poor seller. The agent came back to us. We said nothing.
Finally, the auctioneer asked for more bids from the floor. Silence.
Going once, Going twice, Sold!
My friends bought the property of their dreams for $20,000 under what they were prepared to pay.
Before you enter into an auction campaign just …ask Madeleine for a second opinion.