Why You Shouldn't Trial Selling Privately Before Auction
Why You Shouldn't Trial Selling Privately Before Auction
If you're thinking of selling your home, you might be considering trial selling by price before auction. But is this really the best option? Let's take a look at some of the reasons why you might want to reconsider.
1. You'll Be Revealing Your Reserve Price
One of the biggest benefits of auction is that it allows you to set a reserve price. This is the minimum amount that you're willing to accept for your home. If the bids don't meet your reserve, then the property doesn't sell.
When you trial sell by price before auction, you're essentially revealing your reserve price to the world. Potential buyers will see what you're asking for and they'll know exactly how low they can go. As a result, they might not bother bidding at auction at all—meaning you could end up missing out on potential offers.
2. It's Easy to See Property History Online
These days, it's easy for potential buyers to see the history of a property for sale—including any price updates that have been made. Once a property is listed online, anyone can find it and view its history.
If you've been trial selling by price before auction and then make a last-minute decision to go to auction, buyers might be suspicious. They'll wonder why you've changed your mind and they might think that there's something wrong with the property. In some cases, this could lead them to lower their offer or refuse to bid altogether.
3. You Could End Up Selling for Less Than What Your Property Is Worth
If you've been trial selling by price before auction and haven't had any luck, it can be tempting to just take whatever offer comes your way come auction day—even if it's below what your property is actually worth. After all, you're probably just eager to sell at this point.
But if you do this, you could end up leaving money on the table. Remember, buyers are aware of what you've been trying to sell for and they'll use this against you come auction day. So even if they do make an offer above your reserve, it might not be as high as what your home is actually worth in today's market.
As you can see, there are a few things to consider before trial selling by price before auction. While it might seem like a good idea at first, it could end up costing you in the long run. In most cases you will get the best response by selling at auction. Should the property not sell under the hammer, in the short and sharp marketing period we will most likely have found conditional interest. Average days to sell auction properties at time of writing is around 20, average days to sell a priced property at time of writing is around 60.
Talk to a city sales to see if auction suits your situation and property. We do auctions like few others.