Review – mid campaign
Situation – it’s a great idea to rate the property each week in terms of the interest you have. The guide I have used successfully is Rating A (multiple bidders), B (limited bidders) or C (no bidders). This is a reminder about what you need to do to improve the rating of each auction listing. Use an auction running sheet for the sales team to discuss in your regular meetings.
Feedback letters – ensure they are cumulative and consistent. There is now a pattern emerging for the vendor in terms of price feedback and level of interest.
Buyers – number of second and third inspections or other buying signals (e.g. requests for building and pest inspections, queries on settlement terms or acceptable deposit). Discuss offers to date and those buyers that are showing the most interest and relevant information on them (rent in the area, scaling up from apartment, first home buyers, moved from interstate or investors etc.)
Activity– as discussed previously, keep your vendor informed of activity in their area, their price range and the general market in terms of sales and fresh listings new to the market. What other factors have affected the market since listing? (Interest rates, changes to legislation in your State, employment stability, the general economy etc.)
Summary – do you need to re-shape the campaign, is the advertising hitting the target audience, are you getting genuine inspections or mainly neighbours? Is the number of inspections reflecting that type of property in that area? This is the time to make adjustments if required.
Next stage – second face-to-face meeting to analyse, review and address any concerns.
Finalise – auction week
Situation – A, B or C? Analyse this early in the final week. Follow up everyone who has enquired or attended the open houses throughout the campaign. This will assist you to compile a thorough buyer summary and final auction report for your client.
Buyer summary – a comprehensive list of names, comments and price feedback (which will show a definite price range of interest). This shows your client that you have been diligent in following up all contacts and that the campaign has been comprehensive.
Auction report – an overall summary indicating the interested parties you believe will bid on auction day, the price range where you believe you will have competition and a suggested reserve price which, according to the feedback, will give your client the best opportunity for a successful result on auction day. Emphasise the unconditional nature of the contract/sale.
Activity – recent sales and new listings (updated)
Strategy meeting – final meeting in your office (to avoid disruptions in their home). Items for discussion include the bidders (their background, level of interest etc), offers to date, overall price feedback, your client’s expectations (reserve price) and Plan B (the ‘what if’ discussion – what are their options if their expectations are not in line with the market?)
Final steps– twilight open house (gives the potential buyers a different perspective of the home); letter box drops/invitations to attend the auction and ensure you call everyone!
SOLD! Or next stage – promotion post-auction is critical to continue the momentum you have built up to auction day. Discuss the outcome with your client after the auction, outlining the three stage approach to auction. Price the property with them on the day and be prepared to be aggressive with the pricing (based on buyer feedback) to enable a result in the next few weeks rather than the next few months. Ensure you price the property IN the market, not simply ON the market!
Happy selling!
