THE MINDSET ISSUE How the perception of sellers, buyers AND agents play out in auctions.
Real estate buyers and sellers continue to embrace auction as a method of sale, but this is no one-day event.
While auctions have been attributed with creating feelings of apprehension for buyers and sellers, extensive national and state legislation regulates all auction practices and protects sellers and bidders, making it the most transparent and fair way to buy and sell property.
The auction process begins with the auction marketing program, which the seller and the marketing agent plan together, and the sale of the property can occur before, on or after auction day itself.
For the seller, their property is exposed to qualified buyers with a genuine desire to own the property. They are also able to set terms and conditions of the sale and settlement that suit their own circumstances.
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Buyers today have many avenues of research and the deadline of an auction event allows them to be thoroughly informed and have finance organised so they can be purchase-ready on the day. Seeing their competition in action on the day helps their own bidding decisions and gives them confidence around their decision. If they’ve wanted to put in an offer before, they can; they are in a knowledgeable position to make an offer postauction; and should they be the successful bidder, it is finite, and they own the property.
agents who have had little or poor experience with the process: - Auctions are too much work. - I don’t have the skills. - I can’t ask sellers to pay for marketing. - I’m worried there’ll be no bidders. - I’m worried about the seller’s reaction if it doesn’t sell at auction. “I’ve learned that the number one reason most agents don’t list auctions is their mindset. “In most cases, if not all, they have never carried out an auction campaign because they’ve chosen to believe outside influences and so don’t believe in the process.” Dene finds it ironic that auctions are so much a part of the culture in Auckland, Melbourne and Sydney and he asks “So why is it that so many agents in those cities do auctions? “Are they smarter than others? Unlikely… “There is no plausible ‘reason’ as to why, just an almost endless list of ‘excuses’.” He hears:
Dene Tucker, principal of RE/MAX Auction Services, says agents can be guilty of having auction misgivings.
- It won’t work in our market.
“When I pose the question ‘What things stop us from listing auctions?’, I typically get the following type of responses from
- Our sellers won’t pay for the marketing.
- Clearance rates in our area are awful. - Our buyers don’t like auctions.
- Buyers won’t wait three or four weeks.
