FAQ - Why Don't You Run 'Gala' Auction Event Nights?
28 November 2014 Symon Badenoch
Spring has now sprung in the Canberra property market and the usual influx of ‘gala auction’ events have begun. One of the most commonly asked questions I will have from clients is; why don’t you run large auction event nights? The answer to this question should be in the forefront of every sellers mind, does this auction method really achieve top price for my property?
Large agency’s will tell you various reasons for holding ‘gala’ auction events, usually they can be placed into the below categories;
- A large mass auction event will maximise exposure to a larger audience of buyers as they are a captive audience at such an event.
- Guaranteeing a large audience for the auction will increase the likelihood that several buyers will compete for your property, thus driving up the price.
Whilst you may think the above points are valid reasons for proceeding with a mass auction event there are far more reasons to be wary. These reason should include the key motivator for the agency holding such an event; economy of scale for agency expense. Below are 5 very important reasons why you should not be persuaded into one of these events;
- Group auction events are held offsite in large function rooms with no emotional link to your property except a distant photo slideshow. When you are not on site there is less emotional attachment for the prospective buyer. For the average buyer who is looking to live in their new purchase being onsite will put them in a far more emotional state ready to actively engage in the auction. This comes back to the old ‘see, touch, feel’ tactile nature of human emotional response.
- There is a significant delay in the auction process as your property becomes another number in a queue. Often there will be several auctions before they get to your property, the can produce buyer fatigue when having to waste time waiting around for the property they are interested in. This point leads into the next point;
- If the market is poor, and the previous properties at the auction event have performed badly, this will reflect on potential buyers’ impressions on what your property is worth in the current market thus reducing your potential overall price. Did you see the latest series of the Block?! This was a classic example of this point.
- You will not have your salespersons undivided attention, your salesperson is not focused solely on you and your property at these events. They will have multiple properties up for auction, with multiple sellers present and this can mean they are less likely to achieve the best price by having time to sound out potential bidders. When you are onsite for an auction you have the attention of the entire agency team.
- You reduce the possibility of last minute buyers being able to register and bid. This should not be discounted as important. The ability to handle last minute and individual requests from potential bidders may get you the extra momentum for a higher price on your property. A good example of this was our recent successful auction result in Spence.
If you would like more information on the best marketing strategy for your home please contact our agency.