4 Reasons Why a Property Fails to Sell at Auction
Auctions are one of the most favoured methods of selling properties across Australia, and while the trend for auctions varies state-by-state, and city vs regional locations, the popularity of auctions has grown significantly over the last 20 years. With a proven record of achieving amazing results, PRDNationwide Canberra is one of the leading Canberra real estate agents and we have a diverse range of properties for sale in and around the Canberra area. Our highly experienced auctioneers work tirelessly to achieve the desired result for all of our clients, however, sometimes a house just doesn’t sell under the hammer. Here we will look at a few of the most common reasons why properties get passed in at auction.
The Price Expectations Were too High
It’s natural for homeowners to be emotionally attached to their own houses, especially if they’ve lived there for a long time. This can lead to a biased opinion that their home is worth more than it actually is. Additionally, the real estate market can be prone to fluctuations, especially during times of economic uncertainty and often the value of a property can drop significantly in a matter of weeks. To have the greatest chance of sale at auction, it’s important to view your property without emotion and seek the opinion of an experienced local agent to understand the current market value and set a realistic reserve price.
You Hired the Wrong Agent
Selling a property can be a costly exercise and it’s tempting to choose the agent with the cheapest commission or lowest marketing fees in order to save costs. When choosing an agent, it’s important to base your decision on more than fees and commissions. You need to work with an agent who is experienced in your local area, communicates well, has expertise in auctions and has a track record of selling similar homes to yours for exceptional prices. The cheapest agent can often cost you more in the long run as they often won’t achieve the highest price possible and may not even be able to secure a sale.
The House Was Poorly Staged
While you may not be selling your furniture with your property, your taste in décor may not be what home-buyers are currently looking for and can even prevent people from truly seeing the house beneath. Generally, a home that has been staged for sale will sell for more money and in a shorter amount of time. Un-staged, or poorly staged homes, can appear small, dark and uninviting and can stop people from envisioning themselves living in the space. Seek advice from your agent around the style of decoration you should present and whether your furniture needs to be replaced with modern alternatives. Remember that staging isn’t just about decluttering and decorating, it also involves cleaning and modernising the little details such as scuff marks, carpet stains and outdated fixtures. Incorrect staging can fail to show off your home’s assets and inhibit a sale, so take the time to get it right.
The Marketing Wasn’t Effective
To maximise the chance of selling your property at auction, you need to ensure as many people as possible know that it’s for sale. Marketing fees can often seem excessive, but scrimping on marketing can be hugely detrimental. A good marketing campaign utilises all possible tools including online, print, agent websites and social media to get people excited and make them emotionally attached to your home. Investing in high quality images and a virtual tour will also take your listing to the next level. You should also ensure your agent conducts inspections regularly and at convenient times for potential buyers to attend.
Sometimes, you can do everything right but on the day your property just fails to sell. If you find yourself in the situation where your home has been passed in, don’t be too concerned. There are many options available to you, and many home sell within the first few days of being passed in. The experienced and knowledgeable agents at PRDNationwide Canberra are here to help you throughout the entire sale process, and won’t stop until we achieve the result you want. The past year has been tough, however, Canberra has remained resilient and we are now seeing a resurgence in our local real estate market. Whether you are looking for Canberra properties for sale or have a property to sell, get in touch with us today on (02) 6262 5232 or contact us online.