What to expect from auction in the current market

When your house goes to auction, ready to capture the hearts (and wallets) of buyers, it can feel both overwhelming and exciting. But is an auction the best way to sell your most valuable asset? Fear not—this post shows you how to confidently navigate a sale by auction alongside your real estate agent.

First things first

Auctions are always a fantastic way to draw out buyers and sell either before the auction, on the day, or via private treaty a couple of weeks post auction. 

At the moment, auction clearance rates are hovering at around 61% across Sydney. More homes are hitting the market and we’re moving away from it being a seller’s market to a more balanced one. 

Buyers are cautious, with some possibly still waiting to find out what happens with interest rates later on in the year. With the cost of living continuing to be such an issue for many, bidders are also being stricter with their budgets because they are thinking more carefully about how they will cover the mortgage. 

If we want to see buyers turn up on auction day, or even beforehand, it’s essential that the home is well presented to ensure maximum competition, and that sellers are aware of where their home sits in the market. I will always provide sellers with detailed information about local sales so they can feel informed about their home’s value. 

In my experience, most homes will sell at auction, or shortly afterwards, as long as they are priced realistically. This is something I often talk about with sellers in the run up to the auction, answering questions and providing comparative sales information where necessary. The biggest advantage for you as a seller, is the buyer will purchase your home with a 10% deposit and no cooling off period. This means, once contracts are exchanged on the day, the home is sold.

What happens if I get a great offer before auction day?

This can and does happen when a buyer sees the home, falls in love and wants to secure it prior to auction day. They will generally make an outstanding offer and the buyer is free to accept. As part of our due diligence process, we will inform all interested parties about the pre-auction offer, and we can sometimes then see multiple offers occur, which can of course work out well for the vendor. Even if your home is purchased prior to auction, the buyer still purchasers the property with no cooling off period and a 10% deposit.

If your home does make it all the way to auction day, in the run up we will spend time meeting with potential bidders ensuring they are ready to actively participate in your auction and get feedback on pricing. By listening to the feedback and getting to know buyers' budgets, we will be able to provide you with information on where the market sees value in your home and from this information you will be well informed to then set your reserve price. 

What happens on auction day?

On the day, all interested buyers will register for the auction, and bidding will commence. There will be an open home prior to the auction, which gives you the opportunity to present your home to potential buyers once more. 

If your reserve price is met, the home will sell on the day. Some homes don’t sell at auction and are passed in to be sold via private treaty a couple of weeks post auction. 

What can sellers do to make auction day a success?

An auction has the benefit of being a smooth and relatively speedy way to sell your home. 

As always, the best thing you can do as a seller is to ensure your home looks as good as it possibly can prior to bringing it to market. What we do know, though, is that the market sets the price, and an auction will give you that price, either on the day or soon afterwards. 

Are you looking to sell with an experienced local agent?

At Page&Co, our clients come first. We are a boutique agency and we take the time to focus on the people involved. We know that selling a property, particularly a much-loved home, is a significant life event, and we will help you navigate your sale and move on to the next stage of your life feeling supported and empowered. 

Reach out to Page&Co today for more information.