How To Handle Auction Day Stress When Selling Your Property?
Preparing for auction day is a time of stress and anxiety due to the unknown outcomes. Fortunately, you can adequately prepare yourself for the potential outcome of auction day by accepting three different pricing scenarios ahead of time:
- Your ideal price: this is your happy price that you want to accomplish through auction.
- Your acceptable price: this is a decent figure, but it doesn’t net you any profit or loss. It’s the cutting even middle ground.
- Your unhappy price: this is the figure that you will reluctantly sell for given the market conditions.
Bear in mind, you have a great deal of control over how your auction is run. If you’re unhappy with a price, you can choose not to sell. However, do take into consideration, you will need a good reason not to follow through with the sale!
My Equipment Sells At Auction: What Next?
Once the winning bid is set, your auctioneer will work together with the buyer to close the sale. This usually entails looking over the paperwork and signing off on the contracts. During this time, a deposit is also made, you will also need to finalize the paperwork.
What If No One Attends The Auction?
Depending on your country of residence, there are different laws governing this. For example, in Australia and New Zealand, at least 6 people have to attend an auction in order for the results to get called.
What If No One Wants To Commit To A Bid?
Many buyers are often nervous at an auction setting, which is why it’s quite common for opening bids to progress slowly. In most circumstances, bidders are waiting for their competition to make the first move to scope out how much they should bid. To combat the problem of no bidding, auctioneers will start the bidding low at a nominated price.
This price is not what the seller wants to achieve, but rather, it works to get the ball rolling. It is for this reason that mant prefer an online auction for their industrial equipment.
What If Bidders Never Reach The Reserve Price?
Usually, an auctioneer will put a pause on the auction and come have a talk with you, the seller. It’s common practice to ask the final bidder if they can increase their final bid to match your set reserve price.
If the bidder isn’t willing to increase their offer, then the auctioneer will ask you whether you’re willing to decrease your reserve price. This is why you need to prepare an unhappy price where you’re still willing to sell the property, even if it’s below what you hoped to achieve at auction.
If neither parties are willing to budge on the price, the auction is officially at a standstill and called “passed-in”.
If your home reaches this status because the auction wasn’t successful, you still don’t have reason to worry! So don’t stress or panic. In fact, most of the time, properties sell at full asking hours after the auction has ended.
In most instances, it is possible to negotiate a fair price for selling your property and your auction agent will help you achieve just that!
Most properties that fail at the actual auction still end up being sold to the highest bidder of the auction at least 90% of the time. A solid agent will work to negotiate with your bidder to reach a selling price that you’re comfortable with.
If you can’t reach a price that’s mutually agreeable or your property has done poorly at auction, you may wish to reconsider your pricing as it may be too high!
If you know for a fact that your property is desirable and reasonably priced, most agents end up receiving inspection requests and follow-up calls up to a week after the auction finishes. Though bidding may not have worked out for you, that doesn’t mean people aren’t willing to pay your asking price after the auction has ended.
In fact, it’s not uncommon for competition to perk up and for sellers to have multiple offers pending on their properties after a failed auction attempt.