What Happens When Your Property Passes In At Auction?
It's important to note that if your property does not sell at auction, it doesn't mean you won't get a great price. Frank Valentic explains what happens when your property is passed in.
When your property passes in at auction it can really get you down with your emotions in a spin. The whole selling process has been months in preparation, you have had to clean and deal with inspections, but when you don’t get the outcome you want on auction day it’s important to know and plan, so you can make the right steps to ensure you get the best price for your property.
We have seen an increase in properties passing in this year as the market shifts with clearance rates dipping from previous years. We think it’s important to understand what happens, what the logistics are and how you can plan emotionally if your property fails to meet your reserve.
Sometimes people don’t turn up on the day or get spooked into bidding. We have become used to high and easy clearance rates over the last five years, but as we see a shift in buyers being more cautious, it’s important to know how to work through the emotions if your property does not attract the right buyers on the day.
It’s important to note that if your property does not sell at auction, that it does not mean you won’t get a great price. If you are surrounded with a strong, experienced team, typically properties that pass in at auction sell within a week or two from the auction date. There are always opportunities to negotiate with the last bidder at the auction, as well as leverage your ideal price to those who may have been shy through the campaign.
This is where Vendor Advocate services, along with a proven agent, will work hard to negotiate on your behalf to get the best outcome. If we can identify a strong buyer who failed to bid on auction day, we will ensure the agent will be in contact with them to negotiate a price after auction.
So many Vendors get nervous on the day and end up agreeing to a reserve price with the hope that the bidding will take off when the property is “on the market”. This is such a risky strategy and we would always recommend you pass in the property, rather than risk the property being sold under the hammer for a price that is under what you should have achieved.
If you do not get any bidders on the day, your property will be available on market as a private sale. Again, this is where we will make our recommendation and work with the agent to determine the best price to ensure we attract the right buyers and maximise your sale price. It is important to ensure we leverage the current momentum that has been built during the sales campaign.