Want to ensure more of your properties sell? Use this tactic recommended by seasoned auctioneer and renowned industry pundit Tom Panos.
Mr Panos, says during the auction he very rarely calls the property ‘on the market’ when it hits its reserve price.
Speaking on Sky News’ Your Property Empire, he said that at the start of an auction he’ll actually warn bidders about not calling it.
There are two reasons for this, Mr Panos said.
The first is that it impedes action.
“A lot of people have a tendency to not want to bid until they hear it,” he said.
“So if 20 people come along and they say ‘I don’t want to be the first bidder and I don’t want to bid until we hear it on the market’, actually no one is going to bid. It’s just going to sit there.”
The second is psychological.
“If you’re a buyer that is bidding and you’ve heard it on the market $300,000 ago, you start having a story in your head that you are paying over the top.
“So my preference is to actually not call it on the market. Having said that I have the privilege and the luxury of working in a marketplace in the inner-west of Sydney where most properties sell.”
Mr Panos also said that not every property is suited to auction.
He said the supply/demand dynamic in the geography of the property and the type of the property it is will determine its overall suitability.
“If it is in an area where buyer demand out-strips supply, or if it is in a development with 50 units on the market at the one time, it doesn’t make logical sense.
“I mean, are developers that silly that they don’t pick auction because they are not aware of it. They just know from all of their years that they are not going to get 10 people fighting over the one property.”