Selling your house at auction could be a way of ensuring that you sell your home quickly and at a good price. Here we share some of the top tips and best practices to take your auction sale to the next level.
What does selling your house at auction involve?
Auctioning is when different buyers put down competing offers for a house, either online or in-person, with the highest bidder receiivng the house at the end. It is known to be a good selling method for those looking to sell their house fast.
For properties which are difficult to sell on the open market, such as those requiring heavy repair, auctions could be a good way to guarantee a buyer quickly. Once the bidding has finished, the winning bidder has to pay an immediate deposit. If unpaid, they will forfeit the deposit and incur additional penalty fees.
What are the benefits of auctioning?
There are many advantages to selling your house at auction:
- Simple sales process – no need for negotiation from the seller’s side
- Fees absorbed by buyer – the buyer will absorb any commissions or additional fees with a non-refundable deposit
- Fast – auctioning deadlines are usually within 30 days or fewer
- Market price – because of the competitive process of bidding, it is likely that you will sell for the market price of your property
- No need for repairs – you can sell the property exactly as it is without the need for any repairs or home improvements
- Outsource the hard work – there are plenty of experienced professionals who are responsible for carrying out all aspects of the sales process meaning you have less to do
Top tips to sell your house at auction
If you choose to sell your house at auction, here are some tips to maximise your success:
Find the right auction house
Before beginning the auction process, make sure you find an auction house which has experience selling homes in your local area or neighourhood.
Look for the top auction houses according to location. When you look at the different listings, you can see the number of properties they have successfully sold. You will also be able to find out price information making it easier to compare between different auction houses.
Contacting the auction house beforehand, and attending one of their auctions, will help you assess how good they are at communicating and how they might handle your property at auction.
Set a realistic reserve price
Your reserve price should reflect the current market and what similar properties are selling for. The reserve price is the lowest price you are willing to accept to sell the property. You can come up with this with the help of your agent.
When deciding a reserve price, think about the asking price of similar properties in your local area, as well as their final selling price. The reserve price should be a price which buyers feel is reasonable and which reflects the value of your property. Setting the price too high could deter buyers before you even get started.
Market your property properly
Before making a bid, prospective buyers will often come to your home to take a look at it and decide if they will bid. For this, you will need to ensure that your house is looking at its best.
Firstly, make sure your house is clean. This goes beyond a basic tidy. You should conduct a deep clean throughout the entire home. Not only this, but you should also declutter your home which will make it seem cleaner and more spacious. It will allow prospective buyers to move around your home freely without obstacles. Any bulky objects can be stored away while you have viewings. This will also make it easier when you come to moving as a lot of your stuff will already be packed away.
Make your home as inviting as possible. As well as keeping it clean, think about how you might stage your furniture to create more space. You can also maximise light by using lamps, opening curtains and placing mirrors opposite windows to emphasise natural light. Think about the smell of your home and consider lighting candles or using air fresheners to make your home smell as appealing as possible.
As well as the inside of your home, think about the ‘curb appeal’; the exterior of your home is the first thing that buyers will see so it is your chance to make a good first impression. Repainting the front door or garage door, cleaning the driveway, mowing the front lawn and planting flowers in the front garden are all small things that can be done which could make a big difference to prospective buyers.
When showing your home, make sure to upsell the property’s best features. Put yourself in the shoes of the buyer and think about which features may be the most impressive. House viewings are a chance for you to drive buyer interest and attract as many people to your auction as possible.
Make quick repairs
One of the best things about auction is that there is no need to do a large-scale renovation before selling the property and you can sell in any condition. That said, taking time to make some quick and easy repairs could encourage more buyers and could even increase the value of your property. Things such as tightening leaky faucets, fixing broken fixtures like door handles and fixing loose tiles could all add more value during the auction. Other quick home improvements include a fresh coat of paint and cleaning the carpets.
Promote your property
If you want to attract interest for your property, you should market and advertise your home so that people know about the auction.
Using multiple channels to market your property can help you maximise your audience in a shorter time period. Because of the fast turnaround time of auctions, you will only have a short amount of time to attract potential house bidders.
When marketing your home, make sure you are displaying the best features of the property and using engaging content such as well-lit photos and accurate, detailed descriptions.
There are multiple different channels you could use to market your property including social media, listings, press releases, word of mouth, print media and digital marketing.
Putting money towards promoting your property is a great investment. Experts recommend budgeting around 0.5% and 1% of the final sales price for your advertisement budget. This is enough money that you can cover effective advertising but also low enough that you can cover the costs even if your property does not end up getting sold at the auction.