What if your home doesn't sell on auction day?
Firstly, don't panic! That also goes out to all my fellow real estate consultants — as long as you have done your job well, of course. :)
I still recall my first auction — not one person turned up! We did everything right, listed in all the right places, presented the home well... That was a different market to these days but I still don't forget the feeling that gave me — let alone my vendor!
Each week, when an agent gives you the feedback received from buyers inspecting, it is still difficult to determine who will be putting their hand up on the actual day of auction.
The agent’s objective is of course to achieve a sale for you at auction, so you can move on with your next opportunity; however, in the instance that 'Plan B' is needed and a sale wasn't achieved on the day, here's what I recommend.
Put a price on the home that is in line with what the market is telling you (from the feedback received during the campaign and on auction day).
Make sure the script is tailored to the target market i.e. “affordable home” is likely to attract first home buyers or investors, for example.
Re-list the home in your online and offline marketing, but wait a few days after the auction as there will be a few watchers on Trade Me (for example) waiting to see how the auction went. They may not have been able to bid, but may be interested in putting a conditional offer on the home.
Look at what may be hindering a sale; for example, the home may have plaster cladding. This can put a few buyers off as they may feel it has leaking issues. My recommendation here, is to provide information on the cavity system by a reputable, qualified builder. As long as the agent recommends the potential buyers to obtain their own independent checks prior to purchasing and does not rely purely on this information.
Auction day is going to quite stressful for all involved however, as you don't want to risk under selling or over pricing a home, in my opinion, the benefits I have seen far outweigh the stress. And remember, the home will sell to the right buyer, at the right time with plan B!