October 6, 2021
There are few things more disappointing in real estate than a beautiful house sitting on the market, growing stale day by day. Even if there are valid reasons behind its inaction, the perception appears that the home is overpriced or has something wrong with it. Adding to the issue might be that buyers want what they can’t have. If a house has been on the market for months, buyers will expect to negotiate a much lower price. As much as every agent tries to avoid this situation, it does happen for one reason or another. Sometimes the stars are not aligned, and a property that deserves purchasing within days of hitting the market sits for an extended period. It is a seller’s worst nightmare.
When a house is re-listed for sale via Harcourts Auctions, the first noticeable difference between the two sale methods is the reduction in the asking price. Under auction, the beginning bid will be much lower than the original ‘for sale’ price. Though this change does not mean the seller is taking a financial hit since they will be setting the reserve price, it does mean that, with a lower price, a whole new set of eyes will now be on the property. Rather than fishing with one rod, you are now fishing with a giant net as the property is now more affordable to a bigger audience. Individuals who couldn’t fit the house into their budget before will now have their interest piqued, seeing a starting bid price in their range. You will also attract the crowd that assumes that anytime there is a “price reduction,” they can swoop in and get a deal. A simple drop in the initial starting bid price will suddenly attract people from multiple market areas.
Not only does a home up for auction attract new potential buyers, but it creates a call to action. The possibility of the property sitting on the market going through multiple price reductions is gone. Now, there is a date set in stone of when precisely this property will sell. Interested individuals will know that there is a finite amount of time left for this home. Those folks serious about being the buyer need to get their finances in order, attend an open house, and show up ready to bid on auction day. Putting these steps off will easily cost them the house before they have even tried to make a bid.
At the prescribed time our auctioneer will begin the sale, and the fun of the auction begins. It is now that it is then that emotions are not uncommon to start entering the equation. You have new potential buyers who have envisioned their life in this home now bidding, driving up the price. Maybe they get to the peak of their budget, but being in the heat of the moment and seeing they are only a few thousand dollars away from a chance at owning this home, they bid again and exceed their estimate. People want what they cannot have, and suddenly, buyers who saw this property as a place they had planned on calling home see it slipping away out of reach. The more bids that begin to come in, the more competitive the auction becomes. The rise in offers continues until it culminates in the eventual winner outlasting and outbidding everyone else. Suddenly, the house that sat on the market, losing all its allure, just sold for a price, you are happy with and a price approved by you.
Selling your house is a big decision. It’s your home. It is understandable to have reservations when you decide it is time to change scenery and move on. Odds are, everything will go swimmingly, but once in a while, things do not always go as planned, and the property may sit for a long time. If that does happen, do not panic. Rest assured that by contacting one of our expert agents at Harcourts Auctions, we can help you turn this negative into a profitable positive by re-listing the home to sell through our one-of-a-kind auction platform. By doing so, you are giving new life to a property that was in desperate need of being re-energized, and this process will finally give your home the attention and asking price it deserves.