Two Common Mistakes Sydney Sellers Make
Withdrawing auctions and relying on advertised buyer guides are two of the biggest mistakes eastern suburbs sellers are making at the moment.
They’re also two that can be easily avoided with the right agent on your side.
Mistake No. 1: Withdrawing your auction
Having an auction planned and then not proceeding is one of the most damaging things you can do to your sale price. Prospective buyers will be watching and assume there was not enough interest to go through with the sale, or worse, that there is something wrong with your property. Your withdrawal also goes into the public record for the property, which means buyers will always have access to this information.
According to Domain Group data, auction withdrawals reached a peak at the end of last year with 17.22% of homes withdrawn from action across Sydney. This was far higher than the 9.6% seen a year before and even above the previous peak of 16.08% in December 2015.
Why you should go through with your auction
Even if there’s very little interest in your property in the weeks and days leading up to the auction, it’s always worth following through. We’ve seen many examples of an impulsive buyer arriving at auction to place the winning bid – withdrawing makes this outcome impossible.
Don’t let clearance rates make the call
CoreLogic data currently has NSW auction clearance rates at 55%, which is in line with what we’re seeing in Victoria. While this is lower than what we saw at the beginning of the year, it’s important to keep in mind that your particular market has its own set of buyers with their own preferences. State wide data may show a general trend, but it should not dictate your decision-making or lead you to withdraw your auction, guaranteeing a lower sale price.
Mistake No. 2: Leading with the price guide
Advertised buyer guides that show changing prices as your marketing campaign continues can be hugely detrimental to your property’s eventual sale price. Interested buyers will be watching closely for any change, which means a drop could put doubts in their mind about how much they really need to pay.
Why realistic price guides are so important
It’s vital to have realistic expectations when setting a property price guide. It’s also important that your agent emphasises your property’s best features in your marketing campaign, not just its estimated sale price.
This kind of transparency also goes a long way toward building trust and with potential buyers and attracting those with the right budget for your home. And of course, agents are not allowed to publish prices that are lower than their reasonable estimate of what a property could sell for.
How an experienced agent can guide you
Of all the common mistakes eastern suburbs sellers can make, cancelling auctions and relying on price guides are two that your agent should work hardest to help you avoid.
Their advice should focus on:
- Strategies to find and connect with new potential buyers looking for homes in your particular market.
- The features of your property that will make it stand out against competitors – beyond its asking price.
- How they can negotiate the best possible result with the highest bidder if your property is passed in on auction day.