Harcourts Auctions - Rethink Real Estate

Harcourts Auctions - Rethink Real Estate

Harcourts Auctions

We are not getting rid of traditional real estate, rather we are providing a new innovative personalized solution. Our auction platform steers away from distressed homes and works with your everyday home up to luxury houses.

When selling your property, there are quite a few different modes of sale you can opt for. However selling your home through auction has many benefits, such as:

  • You set the terms and conditions of sale
  • Target marketing puts a spotlight on your property
  • Marketing with no price attracts genuine, cash in hand buyers
  • Auctions create a sense of urgency, bringing buyers to a point of decision

Preparing for an auction

Auctioning your property is about so much more than simply showing up on auction day. There’s a lot that goes into it beforehand to ensure you achieve the best result possible for your property. Marketing your property well is chief among the things you’ll need to do.

Your sales consultant should walk you through your marketing plan in detail, from the images that’ll be selected and advertised, the copy that will be included, to where the property will be advertised (online, papers, brochures, in office, etc.)


What is your role on auction day?

If you’re in the country, the best recommendation is to attend your auction. It’s great to have you there if there are any last minute questions.

Your auctioneer will also want to confer with you depending on how the auction is going. If bidding stops below your reserve price for example, your auctioneer will want to discuss next steps with you.


The reserve price

It’s important for you to understand and be clear on what your reserve price is, and how it’s used during the auction.

There are three types of figures to consider before the day:

  • Your best price – The figure you’d be very happy to accept.
  • Your ok price – The figure you’d be ok with based on the feedback you’ve received, you don’t see a win but you don’t see a loss.
  • Your accepted price - This last figure is basically the one you wouldn’t be thrilled with, but given market conditions, you’re prepared to sell at that price.

Harcourts has already changed the auction game globally and continues to do so here in the United States. First and foremost, it is essential to understand the numerous advantages of purchasing your home through the auction platform.

  • Being confident that the actual market price for the property will become clear.
  • You will know who your competition is on the day of the auction.
  • All buyers have a fair opportunity to buy.
  • Negotiations are open for all to see.
  • You know you are dealing with sellers who want to sell on the day of the auction.
  • At the fall of the hammer, the auction is final, and your successful bid means the property is yours with no further negotiations, and the contract is signed immediately after that.

Preparing for Auction

Once you have identified an auction property that you’re interested in, it’s important to have your finances organised by the auction date. This is also a good time to get all of your other affairs sorted, such as finalising the sale of your existing property, organising a property check and familiarising yourself with all the auction documents.

If you’ve never attended an auction before it’s a good idea to have a look at a few before attending the auction of the property you intend to purchase. This will help you to become more familiar with the auction process.

Inspect the property as many times as necessary and, if you have any doubts, arrange for a builder, plumber, electrician or any other tradesperson to accompany you.

Also, check the auction documents. Make sure you’re familiar with and understand all the details and conditions of sale (the deposit, possession date, balance of payment, list of chattels, etc). You don’t want any unexpected surprises come auction day.


Sorting out your finances

If you plan to buy at auction, it’s important to have your finances sorted out well before auction day to avoid disappointment. Buying a home through auction is a little different to buying a home through other methods of sale in that sales by auction are unconditional.

So it’s vital to have finance confirmed before you bid. Make sure you have a clear budget in mind for the property, and ensure you stick to it. If you are the successful bidder on auction day, the only thing left to do will be to sign the contract of sale.

At auction, you will need to have up to 10% of the purchase price ready to go at the fall of the hammer.


Doing your research

Once you have your finances in place, you’ve worked out your borrowing capacity, and sought pre-approval on your home loan, it’s now time to get to know the market.

If you have identified the property you intend to bid on, have a look at recent sales in the neighbourhood. A great place to start is online. There are lots of property comparison sites on the web which will give you an indication of the average sale price of houses, land and units in an area.


Inspecting properties

Take advantage of an open home and use the time to perform a thorough property inspection. Later on, you’ll want to engage the services of a professional to inspect the building’s structure and for pests, again, this must be done before auction day.


On Auction day

Auction day will be your last opportunity to ask questions before the bidding begins. You should also have an opportunity to give the home one final inspection.

Most auctions are held subject to a reserve price – the price below which a property may not be sold. When this level has been reached, the auctioneer will then announce that the property is for sale.

Be aware that any bid you make over the reserve price could be the one that buys the property.

Passed in is the term used when a property fails to reach the reserve price and negotiations between the highest bidder and the vendor do not result in a sale.

After being passed in, the property will now be open to the market, and everyone will have equal opportunity to submit their offer.

If you’re successful on the day you’ll be asked to sign the sales agreement and pay a deposit. This is normally 10% of the purchase price. You should be aware that there is no cooling off period on the purchase of a property at auction, as there is through other methods of sale. This is why it is important to do your due diligence on the property before auction day.

We are not getting rid of traditional real estate, rather we are providing a new innovative personalized solution. Our auction platform steers away from distressed homes and works with your everyday home up to luxury houses.

Here is an overview:

  • 1582 Properties Listed.
  • 1484 Properties Sold.
  • 27 days average time on market.
  • 3 stage auction process.
  • 44% expired traditional listings converted to auction.
  • 56% new to market listings listed as auction.
  • 81 average number of showings through an auction property.
  • 98% properties which receive offers before auction day.
  • 51% more showings than traditional listings.
  • 90% people who would research an auction property before a traditional listing.
  • 36.1% bidding to start from price versus final sale price.

SUCCESS RATE

HARCOURTS AUCTIONS TRADITIONAL LISTINGS
The Harcourts Auctions process has over a 90% list to sell ratio. On average, the list to sell ratio is between 30% and 50%.

PRICING

HARCOURTS AUCTIONS TRADITIONAL LISTINGS
  • Auctions have a bidding to start from price or no price, allowing a negotiation up.
  • The marketplace doesn’t know the Sellers expectations or their final number.
  • There is no ceiling to the value.
  • Market decides the value.
  • Buyers are focused on what the property has to offerwithout the distraction of a list price.
  • Auctions are subject to a sellers confidential expectation/reserve, allowing a seller to be in complete control at all times.
  • Traditional listings have a for sale list price.
  • The list price immediately tells a buyer what the seller willaccept.
  • Buyers will always try and negotiate and offer below the listprice.
  • Buyers are focused on how much less they can buy your property for and how much they can negotiate your list price.
  • If the property isn’t selling the only option is to reduce price.
  • In a traditional sale the buyer knows your reserve price – because it’s your list price.

STRATEGY

HARCOURTS AUCTIONS TRADITIONAL LISTINGS
  • All inspections, reports and disclosures are completed up front.
  • When a property sells at auction it is sold on an ‘as is’ basis.
  • The buyer is required to complete all due diligence beforesigning the non-contingent purchase agreement.
  • During the auction process the seller is in control and theseller dictates the terms.
  • In a traditional listing the buyer signs a purchase agreement, lists their terms and inspection periods.
  • Buyer completes due diligence after making the seller agree to the purchase agreement.
  • During contingency periods Buyer has the ability to ask for repairs, price reductions and extended time to close.
  • During the traditional process, the buyer is in control.

SET DATE

HARCOURTS AUCTIONS TRADITIONAL LISTINGS
  • Auction have a set sale date – auction day.
  • The set date tells buyers the seller is motivated to sell, although not desperate.
  • Forces buyers to make a decision and creates a sense of urgency amongst buyers.
  • Buyers are more likely to view an auction property before a traditional listing, allowing us to captivate the entire market.
  • Set date allows market value to be found quicker as the process creates urgency and encourages buyers to make an offer for fear of missing out.
  • Traditional listings are marketed without timeline and with no set date for sale.
  • Traditional marketing can be described as a passive approach with no set strategy.
  • Can take months to obtain valuable feedback and discover market value.
  • No set date means buyers are not forced to make a decision.
  • Buyers keep looking at other property whilst watching the sellers property continuously sit on the market.
  • Buyers will wait for a price reduction because they have no call to action.

CONTROL

HARCOURTS AUCTIONS TRADITIONAL LISTINGS
  • Viewings and showings are restricted to Open House times only to further assist qualifying interested buyers.
  • Listing agent is always in attendance during showings to sell the home and defend any feedback.
  • Agents able to monitor feedback from buyers as all open house attendees must give their information before entering property.
  • Interested parties must all view within the same open home.
  • All people are called if an offer is received prior to auction to ensure equal chance and best possible outcome.
  • Listing agent may put a lock box on the property and allow buyers to go through the property at any time.
  • Buyers permitted to view the property alone – gives them a feeling that they are the only one interested in the property.
  • Agent has a disconnect to the buyers feedback as they aren’t present during the viewings and do not understand the true features and benefits of the property.

INQUIRY

HARCOURTS AUCTIONS TRADITIONAL LISTINGS
Our Auction listings have experienced at least 50% more inquiry than a traditional listing with every property receiving at least one offer before auction day. Traditional listings received at least 50% less inquiry, which means less competition.

Work With Us

While the proud legacy of Harcourts goes back over a century, our focus is firmly on the future and continuing to offer our clients the highest levels of personal and professional service while achieving the best possible results. Contact us today!