Auctioning can be a successful way to get top dollar for your home just be aware of these 6 pitfalls

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AUCTIONING can be a great way to sell your house.

It can build a bit of competition and in some cases when buyers are really keen that can help drive the price substantially above reserve.

But like all aspects of selling a home, not everything always runs smoothly.

Avoid these pitfalls and hopefully it will be a successful result for all concerned.

Matt McCann, CEO of LocalAgentFinder, said picking the right agent was definitely the most important starting point and could be the difference between your home being passed in or achieving the best possible price.

RECEIVING MULTIPLE OFFERS BEFORE AUCTION

Doesnt sound like a pitfall but it can be. Mr McCann said accepting an offer before auction means you stop the building up of competition that can come on auction day and potentially force up the price of your home.

At the same time, auction day could mean the property is sold for less than what you are offered in the lead up,’ he said.

Mr McCann said offers made before auction should be exceptional’ in price and favourable in all conditions, as buyers were not just purchasing your property but the right not to compete with the market.

NO BID ON AUCTION DAY

Your agent should be in regular contact with you to advise whether the interest is there and whether or not you should proceed with the auction - not just push ahead anyway.

THE BUYER WALKS AWAY FROM THE DEAL
Surprisingly if your property sells at auction, it doesnt necessarily mean the deal will go through. It should, but it doesnt always.

Occasionally, buyers do walk away from their contract and the main reason for this is due to finance,’ Mr McCann said.

In some cases, you could be left with having to pay your agent his or her full commission.’

The best way to try and avoid this situation is to make sure your agent does a lot of work vetting buyers and screens out the tyre kickers’.

A POORLY TIMED AUCTION DATE

You may not follow the AFL, Rugby League, Union or Football but you can be guaranteed some of your potential buyers do.

Avoid scheduling your auction for the big Grand Final days to ensure the most people possible can attend.

YOUR PROPERTY DOESNT REACH RESERVE AND YOU CHOOSE NOT TO SELL

The decision to relist your property shouldnt be taken lightly,’ according to Mr McCann.

Re-listing your home after a failed auction campaign provides a huge amount of information to prospective buyers, including how much your property was passed in for. They know that youre not going to accept anything under the highest bid and it shows that youre potentially not open to negotiation.

It could appear stale’in some buyers eyes.

LOWERING YOUR RESERVE TO MEET THE MARKET

You should not have to lower your reserve if your agent has priced your property realistically,’ Mr McCann said.