When selling your property in Southland, NZ, it’s essential to understand all of your options. One way you could sell your property is by auctioning it. This method is often faster than traditional selling methods.
What Is A Property Auction?
A property auction is a public sale in which potential buyers publicly bid on your house, with the house being sold to the highest bidder once your reserve price is met.
Buyers must register their interest with your real estate agent, and all bids are public, so all buyers are aware of competing bids. Once a buyer wins the auction, they are committed to buying the property.
What To Do When Selling Your Property Via Auction In Southland
What should you do when auctioning your home?
Work With A Reliable Real Estate Agent. For best results, you shouldn’t go about the auction process alone. Work with an experienced agent who’s sold Southland homes at auction before. Search for an agent who:
- Understands how to appraise homes so they can give you accurate information about the value of your property.
- Knows and stays up to date with the local real estate market.
- Has a track record of success selling homes.
- Knows how to market available properties well.
- Is transparent with their prices.
Your agent will act as an invaluable source of help, guiding you through the auction process and advocating on your behalf.
Understand Real Estate Terminology. Of course, it’s vital that you understand the common terms used when auctioning properties in New Zealand.. A few terms to know are:
- Reserve Price. This is the price the Vendor sets that indicates how much you’re willing to sell the property for. Your reserve price is entirely private to the public. This is essentially the minimum at which you’ll sell, so any bids that are lower than this price will not win the auction.
- Vendor Bid. These are bids made by you or your auctioneer. Vendor bids are often made to start the auction or keep the auction going.
- Passed In: If your reserve price isn’t met by your buyers, then the property is ‘passed in,’ and you can negotiate with the highest bidders.
Remember to work closely with your agent so that they can answer any questions you have regarding auction rules, terminology and so on.
Know The Costs Of Selling At Auction. Be aware of what you’ll need to pay when selling at auction. On top of real estate commission fees and any money you put into marketing, staging and working on your property, there are also auctioneer fees.
Remember to discuss costs with your real estate agent and your auctioneer before you agree to anything. All fees should be clearly listed so you know exactly what you’re paying for.
Set Your Reserve With Confidence. Work with your real estate agent to understand buyer feedback, current market conditions, and your own goals. This insight will help you set a well-informed and strategic reserve price for your property.
That’s why it’s essential to work with an agent who knows the market. Early in the process, they’ll use their expertise and local sales data to appraise your property accurately, laying the groundwork for a strong pricing strategy when it comes time to set your reserve.
At Todd & Co Realty, we even offer our clients a free appraisal service, so you can know your property’s price even before you decide to sell.
Prioritise Clear Communication. Clear communication is key when selling your home. With so many moving parts, it’s important that you, your agent and everyone involved stay on the same page. Make sure there are regular check-ins throughout the process, and don’t hesitate to speak up with any questions or concerns along the way
Ask your agent about how many buyers have registered their interest, when the auction should be held, etc.
Prepare Your Property Beforehand. Repairing or upgrading your home can improve its property value, and proper presentation can draw buyers in.
Look at your house and think about whether or not there are any repairs you need to make. Is your property experiencing any issues with plumbing, electricity or anything else? Additionally, you could make renovations to push the property value and the reserve price up.
Furthermore, consider house staging to make your home more presentable. Depersonalise your home by removing personal possessions like family photos and niche decor so that your house appeals to the general public.
Put Effort Into Marketing. You should also market your property when selling it at auction. Marketing matters - especially when selling at auction. Your salesperson will help shape the right strategy, but it’s important to invest in marketing that attracts as many potential bidders as possible. The more interest you generate, the better your chances of strong results on auction day.
Marketing online and offline can get more attention to your property, and open homes allow people to see your property for themselves.
Successfully Selling Your House At Auction In Southland
If you’re interested in selling your home at auction, we welcome you to reach out to us at Todd & Co Realty. Our friendly agents have helped sell homes through standard means and through auctions, and we’ll be glad to help you.
Our team has been conducting Auctions in Southland since 1865 - so when it comes to auction day, you're in good hands. For house lots, general auctions or larger sales, we also work closely with our trusted partners at William Todd Auctions.
You can reach us on 03 218 7124 or through our website.
Todd & Co Realty: Let’s discover the best way to sell your home in NZ.