There is often a debate over whether it is better to sell a property through private treaty or take it to auction. For some agents, the entire process of moving from one to the other can be quite overwhelming.
Those agents who swear by auction campaigns will often default to the fact that auctions are the most transparent sale process for all those involved, and while that is most definitely true, it’s not the only positive aspect of selling under the hammer.
There are a few things to keep in mind and a few things to forget about altogether when it comes to selling through auction.
1. Forget about clearance rates
Some selling agents can get too caught up in weekly clearance rates and can let these figures dictate whether they will or won’t launch an auction campaign. In our LJ Hooker Auction Services training sessions, I often say that the best thing to do when it comes to clearance rate results is to ignore them altogether. Instead, focus on the auction as a sales process by which to achieve the best possible results in the best possible time frame.
2. Keep it tight
Working to an auction date means you’re flushing out buyers to a specific deadline. You’re sure to attract more serious, qualified buyers, and even if that property doesn’t sell under the hammer on the day, it has a stronger chance of selling within the next seven days to someone who originally attended the auction.
Auction campaigns typically run from three to four weeks, and with such tight timing, you’re sure to meet a number of interested buyers and onlookers who could potentially become future sellers. Many agents know that you can never guess where you’ll meet your next client — auctions are the perfect place to do it.
4. Total control
Tight deadlines and quick turnarounds mean that you have more control over the total sales process. From the day you meet your vendor to the day the property is listed and through to the day that gavel comes down, the campaign is in your hands.
ABOUT THE AUTHOR
David is responsible for the development of auctions within the LJ Hooker network, as well as coaching LJ Hooker’s future captains recruits.