Currently here in Victoria we have restrictions on public auctions as part of the current health advice around COVID 19. Here at Kardinia Property we specialize in Private Sale, we have done and will continue to do so well past the current whole pandemic. For us, the current restrictions do not however alter the way in which we implement our smart sale system to get the highest price for our clients. There is some commentary about what the restrictions on Auctions. Our colleague Peter O’ Malley wrote the following article about using Auction as the a method of sale…
Auctions always bring the best price -a long held myth that does not hold up against the reality. Whenever you have the fortunate situation of more than one buyer trying to buy your home, the worst thing the agent could do is disclose the competing offers to each of the interested buyers – which is exactly what happens at a public auction.
In such circumstances, the respective buyers focus becomes outbidding the competing buyers by $1000, as opposed to offering their highest price for the property.
When you are selling your home, you want the eventual buyer to have paid their maximum price for it. To win an auction, the buyer does not need to pay their maximum price, they just need to be the highest bidder.
Selling to the highest bidder as opposed to the buyer whom offers the highest price is why auctions fail to achieve the best price for home sellers.
If one buyer is prepared to pay $1.1 million to buy your home and the under bidder is only prepared to pay $1 million, it is mathematically impossible that a public auction will attain the best price.
Home sellers are often told that the auction deadline pressures the buyers. As the auction deadline draws closer, the pressure is often transferred onto the seller to come down in price. Agents call it “meeting the market”.
It is extremely common for a property to be passed in at auction and then sell for a higher price after the auction during a negotiated process.
It damages the price of your home if the property is passed in, too a bargain hunter on auction day. Any chance of a high price is destroyed when your home passes in for a low price at the auction, in front of a big crowd. Buyers will wonder what is wrong with your home when it fails at auction. The home is often not the problem, the selling process failed the owner.
Here at Kardinia Property it is business as usual, with a few small procedural changes in line with government recommendations. We have always been here to help, we still are and we will be into the future.
Your best insurance in uncertain times is experience and integrity. Jackson Wilson has been working in real estate, first in his family business Wilsons Real Estate Warrnambool, then as a director of another Wilson based family real estate business here in Geelong and now as Director of Kardinia Property also in Geelong. He has seen the property market in all of its different cycles and has a proven record of results over his 27 years in the industry. If you need to sell your property please give him a call, he is a nice normal guy who will always have your back and make sure you are looked after in the safest possible way.
The Kardinia Property office is currently operating remotely simply call Jackson direct on 0418 991 988.