I am the first time invester and I have put my property for private sale for the last 7weeks but not single written offer made. the real estate agent is now saying that we have to go auction. What is the chance of getting the sale with this method and what others think of this? Please help…..
We are very stressed with this whole situation and do not know what to expect,,,,An auction will work well so long as the agent is experienced at conducting them. It is widely stated that there are only ever three reasons why a property will not sell. Price Agent or Promotion. I assume that the agent you have appointed is doing their job well but you might like to as yourself. Did you or agent determine the list price?Did the agent provide a cma? Have you received feedback from your agent as to what buyers have said about the property?have you received written reports as to viewings, enquiries, offers?
Maybe a revamp of the marketing will bring fresh attention to your property , otherwise removing the price as per auction should stimulate buyer interest from a variety of price expectations or a price reduction may be required. All the best
JeffThank you sooooo much Jeff.
Yes the lsit price is actually quoted by the Agent mid 600K and the verbal offer is all around 400-450K. this is 200K difference. This is less than what I have padi in the first place. I do not bbelieve that the market went down at 30%!! I even spend money to improve the property,,,, we are really not sure waht we are doing wrong,,,Often a minor percentage over the market value will deter buyer interest. I would ask my agent if other properties in the area/price range have been selling to guage the market activity. You could get a valuer to give their opinion, this will cost 300-500, or get in a few other agents who are active in your area and quiz them on their views as to price. How long on the market? Have you listed with a discount commission agent? have you used pro photos and print media ads?
sorry Jeff but what is CMA?
current market analysis. It displays the comparable properties in similar locations, usually within 500m radius and shows their recent sales, up to six mths, properties currently on the market and can be as detailed as showing listing price drops and number of days days on the market. It is a snapshot of real estate activity in your area for properties similar to yours. This is essential to properly establish a listing price if not going auction. It is useful to determine setting reserve for auction and can be used to overcome low offers from buyers. Not all agents use cmas some know their market place well enough to store this data in their heads but in Queensland it is a legal requirement to give one to sellers unless going to auction
Hi Denon
What research did you do before you determined that your property was worth mid $600k? Did you base this on other properties in your area or did you get some RE Agents to give you an appraisal?
If you are selling it privately (ie, without an agent), as Jeff says, the only two reasons it wouldn't be selling are price and marketing. If you tried to sell it privately, where did you advertise it? How broad was your audience?
If the issue is price, then drop the price. Spend a few hundred dollars and get your property independently valued (by a valuer, not by a RE Agent who may increase the quoted sale range just to secure your listing).
Good luck
K
HI there,
As the others have mentioned if the house is incorrectly priced then it is unlikely you will achieve your price at Auction either unless there is something very unique about the property.
I am more concerned that you are feeling coerced into an auction situation that you are clearly not comfortable with. Perhaps take the property off the market for a while at least a few weeks make some cosmetic improvements then decide if you want to put it up for auction at least then the stock of genuine buyers may have changed and not be aware of what the asking price was in the private sale.
If you go to auction now the buyers have the upper hand as they know what the asking price was at private sale and are likely to be hoping to get it for less than that at auction as they sense your desperation.
Take a breath, Take some time and take stock and don't be forced into anything that you are not comfortable with.
NatI am in real estate sales and understand what Nat has said to be true. Many agents "buy" a listing by overquoting the potential sale price. This may be the case if you are getting offers so low. The general case for unsold property is down to the way it is being marketed. Professional photos are crucial, as is a good web presence. As the market tightens it is even more important to have an agent who is busy in your local area, they will be in contact with more suitable buyers. Auctions are a clean way of selling but must be done properly by an ethical agent with the sspecific skills required to carry out a successful auction campaign. Auctions are more than waving a gavel around and yelling quickly, the entire process is different.
Sometimes agents push auctions and hope for the best, this rarely works in the vendors best interests. Talk to your agent and find out why they recommend auction. examine the way it is being marketed and consider an independant valuation. it may work out cheaper to invest in marketing rather than drop the price but if it is too overpriced, you may need to do both.Are you currently happy with the way it is being marketed?
Ask yourself, if you seen that property online, or in an agents window, would you be interested in looking at it? Do the photos do it justice? Does the marketing actually represent the property – and vice versa.. does the property represent the marketing?
If you are getting lots of interest by no sales, then the marketing is very good, but the actual property is letting you down, it also means that people may be willing to pay that price.. but again the property may not look up to scratch.
Determine what the response is when people actually see your property and that will help you gauge in which direction you need to focus you attention on.
Hi
I run a business where we auction property
It is possible to auction property and get a near price but in most cases its more likely to sell if it is marketed rightWe can offer you this service and get people interested and because of the way we work your more likely to get a good price
T-Auctions is a mobile texting auctions
With no premium rates and expands from small investors to big time investors
And has a great potential market nich most companys do not haveSo why not contact me and we can discuss a price although service price is upfront I’m sure we can make a reputable decision
Kind regards
Natasha turner
We are very stressed with this whole situation and do not know what to expect,,,,
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