Four Pitfalls To Avoid In Your Auction Strategy
The property industry is becoming and more and more comfortable and confident with auctions; as clearance rates improve, sellers embrace the process and buyers are more open-minded to purchasing at auction. Agents however, appear to be becoming more complacent and a little too comfortable with the process and falling victim to several pitfalls that can damage or destroy an auction before the call has even begun.
Every auction agent should be mindful of these pitfalls and ensure their auction campaign is structured, professional and thorough to get the best results possible every time...
1. You assume your seller understands the strategy
So you have explained the reasons for auction and the benefits that come with an auction strategy - the fierce competition between buyers, the opportunity to receive market feedback and the ability to set a distinct timeframe for the sale. However, have you explained what they should expect throughout the process? Are you working towards selling before auction? What dialogue will you be using when buyers ask for price expectations? What can they expect offers prior to auction to entail. The devil is in the details. If you can provide your seller with a clear understanding of your strategy and how you are going to achieve the best result for them, they will be less likely to question your actions and develop concerns between going live and selling under the hammer.
2. You don't take buyers seriously
You have so much confidence in the auction process that you dismiss low ball offers or enquiries that don't appear perfect early on in your campaign. It is very important that you maintain the strategy regardless of your buyers initial offer, terms or even questions. At the end of the day, your whole campaign is about finding a buyer to turn up on auction day and place the highest bid. You need to treat every potential purchaser as if they are 'the one' to avoid losing them. A low offer pre-auction can be turned into a sale by a good negotiator - it is all a matter of sticking to the game plan.
3. You don't show up
An auction campaign allows you to not only get the best chance to sell a property for the highest price but to also profile your expertise and your professionalism. Every interaction you have during an auction campaign reflects on your skills as an agent. Going through the motions will not impress anyone, so you need to treat the campaign with the importance it deserves and put your best foot forward.
4. You don't communicate with your auctioneer
Possibly the best support you will have during an auction campaign is your auctioneer. Your auctioneer should be well informed on property values in the area, they should understand current market conditions and most importantly they know what to expect come auction day. Communicating with your auctioneer throughout the process will not only make your job easier but it will improve the outcome on auction day. The more information your auctioneer has about the property, the sellers and the campaign, the more support and guidance they can provide. Make sure you work with your auctioneer rather than just have them working for you.