Valuable information for the Seller

Michael Tierney AREINZ
Licensee salesperson
Auctioneer
Newman Real Estate Ltd
Licensed (REAA 2008)
14 Buckingham Street, Arrowtown

Contact Details
Phone: +64 27 442 1167
Email: michael@arrowtown.co.nz
 
What you need to know about selling by auction.

Selling by auction is the oldest method of making a sale. It was used in Roman times to achieve the best price for prize slaves and the success of auctions has endured throughout the ages.

Fortunately, we have replaced the selling of slaves with the selling of real estate. As the Vendor (the Seller) you need to understand what the Auction process will do for you and how it works. Read on.

THE BASICS
  1. The essence of an AUCTION is that there is no price stated. The benefit of that is the buyer can never say 'your property is too dear' Buyers will inspect without being hindered by an advertised price.
  2. The buyers are the ones who must make the first move and state what is their opinion of price.
  3. The Vendor can listen to the buyers feedback and get a valuable insight into the market value of their house without disclosing their price.
THE MARKETING
  1. The vendor has the option of advertising in a large number of publications to achieve the widest coverage amongst the potential buyers.
  2. A small investment (compared to the value of the real estate) will see your property advertised in the best newspapers and publications available. We will tailor the right package to suit your needs.
  3. A combination of web, newspaper and print advertisements will reach out to the potential buyers.
THE PROMOTION
  1. Once the marketing has commenced, your property will be promoted to clients on our data base and to new clients who inquire as a result of our advertising.
  2. Buyers are shown the property and will decide if it suits their needs without the objection of price..
  3. If the property suits their needs they will make inquiries as to its value.
SETTING THE MARKET VALUE
  1. Buyers are well informed. When they ask 'What is the asking price?" we will guide them by way of comparisons and past sales.
  2. We will NEVER tell them what we think it is worth. That is for the day of the Auction to decide. We will always make sure the buyer can afford the property. There is nothing to be gained by letting the buyer believe they can purchase a property when the market value is more than they can afford to pay. How we do that is by our experience. That's our job.
  3. More importantly if the buyers fall in love with the property, they will make all effort to buy it.
THE FEEDBACK
  1. Buyers are always willing to give their opinion of value. This is then fed back to the Vendor
  2. This information will allow you to make your own judgement as to the value of your property.
  3. The agent will provide you with a comprehensive background to the present market, what is selling, for how much and what is available for sale that will be a competitor to your property.
THE WRITTEN REPORTS
  1. The agent will proved you with a written weekly report on the marketing of your property.
  2. These reports will consist of buyers feedback, possible buyers bids and market information.
  3. The agent will explain the information so that it is in easily understandable language.
THE AUCTION DAY
  1. On the day of the auction the vendor, with the assistance of the auctioneer will set the reserve price. This is the price below which the property will not be sold.
  2. The auction process consists of the reading of the terms and conditions of Auction followed by a description of the property and finally the bidding process.
  3. The bidding process will determine the final sale price.
AFTER THE AUCTION
  1. If the property is sold at auction (under the hammer) then the deal is unconditional. Neither party can back out.
  2. A deposit will be collected from the purchaser and held in a trust account.
  3. The SOLD sign is attached to the property.
WHAT HAPPENS IF IT DOES NOT SELL?
  1. If the property does not reach the reserve price, then it is 'passed in'.
  2. The highest bidder has a short time to negotiate with the vendor.
  3. Then all bidders have an opportunity to negotiate with the vendor. This is called Post Auction Negotiation and is a valuable tool in selling your property.
OWNERS RESPONSIBILITY AT AUCTIONS.
  1. The owner will enter into a written agreement to Sell by Auction
  2. The advertising  of your property is for the owners to pay. A suitable marketing package will be put together for you at the start.
  3. We place all the advertisements and print all the brochures.
  4. We will ask you to carry out minor repairs, tidy up the property and present it in 'showroom' condition.
It is the competitive bidding process that will get you the best price. Buyers who are determined will bid to make certain they are successful
AUCTIONS ARE SUCCESSFUL METHODS OF SELLING REAL ESTATE.

Get a price that is the best on the market, sell by auction.
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