| What to do if your home passes in at auction?
Not reaching your reserve price and getting passed in at auction can be a stressful experience. After putting months of work and lots of money into achieving a good auction result, coming up short is disappointing. However, with a good agent and a plan, you still have a great chance of selling in the days after the auction.
Understanding why properties pass in can help you avoid the same fate and increase your chances of a sale on auction day, or even immediately afterwards.
The main reasons why properties don’t reach their reserve price are poor marketing, lack of follow-up, changing market conditions, and a reserve set above market expectations (the most common reason).
If you’re going to auction, it’s crucial to hire the right agent who has excellent local knowledge, a successful history of selling homes similar to yours, and the ability to negotiate effectively.
Ensure Your Price is Realistic
Usually, if your home is correctly priced and marketed, you will find a buyer either on auction day or soon after. It may just take a little extra work to get buyers over the line. Just because your property failed to reach the reserve doesn’t mean you won’t find a buyer.
The highest bidder at the auction has the first right to enter into negotiations. If this is not successful, you can then open negotiations with other registered bidders and interested parties.
Often, you may be able to negotiate a better price after your property is passed in at auction. If a sale is essential to you, it’s important to be open-minded and flexible.
If you can’t negotiate a sale on auction day, you can put the house immediately on the market for private sale. Ask your agent to go back and contact everyone who came through the showings. Your agent needs to be an expert negotiator and follow up on all leads.
Many properties that are passed in sell on the same day or during the week following the auction after negotiations with bidders.
It’s a good idea to try and reach a sale within three days of the auction to sell under auction conditions, meaning there is no cooling-off period, and the deposit needs to be paid immediately.
In conclusion, even though having your home get passed in for less than your reserve price can be disappointing, it’s not the end of the world. If you’re flexible and realistic, you may sell it soon afterwards. Hiring the right agent, ensuring your price is realistic, and following up on leads will increase your chances of achieving a successful sale result.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content. This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever