Thursday, August 04, 2016

The Power of Auction

It's no surprise that when I was growing up, terminology such as 'going to auction' and 'setting the reserve' were everyday phrases 
in our household. 

The first experience I remember of an auction was when we were selling our family home. Auction day arrived and I was so excited as the crowd gathered on our front lawn, staring at the front door, waiting for the auctioneer to appear. Suzannah and I took prime position, ready to watch the action unfold. It was fast and furious and ended with everyone clapping and congratulating us on a fantastic result! Well, at least that's how I remember it!

Over the last six years, I have closely studied the auction technique. I have been to countless auctions and have seen hundreds of clients go through the auction process. It is our job to explain the sale process and educate clients on the pros and cons of each method of sale. We make sure that before we market our clients' home that they feel comfortable and confident with the chosen method of sale.

For me, the auction process is something I fully believe in, and my studies in marketing supports this. Having a concentrated campaign with a set point in time to encourage action and leverage competition is exactly how you get the best results! 

An auction puts the vendors in the driver's seat and ensures they are dealing with serious buyers - the ones who are in a position to purchase the property free of conditions and with no cooling off period.

CoreLogic RP Data statistics state that not only does an auction help achieve premium results, but in South Australia properties sell on average in under half the time than properties listed for private sale. Serious buyers also benefit from this process as they can utilise their financial position on auction day to have an advantage over conditional buyers in the market.

The auction method in South Australia is starting to gain traction, however, we are still behind our eastern state rivals who on average take over four to seven times the amount of properties to auction. Its popularity has maintained power throughout winter with auction activity increasing across the majority 
of our capital cities in July.

These figures reiterate the strong results 
we have witnessed with Team Toop's auction properties. Last weekend Toop&Toop recorded an 80% clearance rate at our auctions, and across the Adelaide market there was 71.6% clearance rate from a total 106 auctions. So with all signs pointing to auction, why can it 
still seem so daunting?

In our experience it comes down to the two E's. Emotion and Education...

There is no doubt it's an emotional roller coaster. The anticipation of how many people will come through each open, the competing property auctions throughout the campaign, or the worry that no buyers are interested. It's stressful. This is where our role as agents is so important. We are here to help you navigate through the emotion, explain every step in the process and continually communicate with you. 

The power of emotions in the auction process is important to be acknowledged, understood and respected.

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