Auctions and Advertising
Now, if you are a Real Estate agent you will definitely LOVE auctions. It is the best way to control the timeline (have a set finishing date) and therefore control when you are getting paid. It also encourages the vendor to splash out on large budget print advertising as there is a set time and no-one wants to be at an auction with no buyers bidding. If that happens then all of the money and time spent is a waste and you need to start the 6 week process all over again. So this tight, set timeline makes the vendor motivated to play the game.
BUT, does it actually work? Well yes and no. In two mains ways it works quite well. Firstly, you cannot sell a secret. So whether you auction or not, you will need to spend SOME money on letting people know about the house. Not too long ago I sold my old XR6 Falcon. I ended up spending just over $400.00 on advertising and sold it for $6700 which was ok considering the age and condition. This $400.00 represents a large investment in the sale (6% of the final price) but it was what was needed to find the correct buyer who was prepared to spend the funds restoring a great car. I could have spent far less but I may not have found that buyer and still be stuck with the car. Now what would have happened if I hadn’t spent that money? Maybe I would have ended up losing my patience and just sacrificing the price to have the car gone.
The second point in favour of auctions is the timeline. It is useful for all concerned to know that we are finishing on this date. This helps everyone, buyers, seller and agent, get all the ducks in row and everyone on the same page.
Now at SAVOY Real Estate do we auction every house? NO. Sometimes we do. Sometimes there are strong reasons to control the timeline but in most cases auctions are really only best for the agent. In reality, almost all the time, it is better to set a date to have several offers presented to the Vendor. This is the best way to keep the price high. This is the best way to remove a lot of the stress. This is the best way to control advertising spend. This is the best way to get the most people involved as some buyers refuse to attend auctions.
SAVOY Real Estate prides itself on looking out for the client. We know what it is like to be bullied into selling when the price is not right and we go out of our way to shelter our vendors from that experience.
When it comes to advertising. We need to tell as many people as we can but these days the internet is fantastic at doing that. For a small amount of money we can get your listing out to a large amount of people. Just like my old XR6, it is worth spending some money to get the lump sum at the end. Remember, you can’t sell a secret!