What to expect when preparing for an Auction
Selling your home at auction is a unique process that requires preparation and planning. Once you have signed the listing agreement with your agent, it is a good idea to meet with them to discuss the auction process. During this meeting, your agent will explain their role, what is expected of you, and what needs to happen leading up to auction day.
You will go over the marketing plan and the steps involved in auction day itself. It is important to get all key decisions in writing, so there is no confusion later. This includes agreeing on marketing costs and auction venue—especially if the auction won’t be held at the property. By ensuring everything is clear from the start, both you and your agent can focus on getting the best result on the day.
How your home will be marketed for Auction
Selling at auction requires a strong marketing campaign to build buyer interest quickly. Auctions typically have more upfront marketing costs compared to private sales, but this investment can help attract serious buyers.
Here’s how your property will be promoted:
Private Inspections: Your agent may arrange private viewings for potential buyers who want a closer look.
Open Homes: Regular open-for-inspection days allow the public to view your home. These are great opportunities to gauge how much interest there is in your property.
Brochures: Your agent will create brochures highlighting the key features of your home, which will be available during inspections or at the agency. Many include a floor plan to give buyers a better idea of the layout.
Online Listings: Real estate websites such as realestate.com.au and domain.com.au will feature your property with photos, videos, and possibly virtual tours to attract online buyers.
Signboards: A large sign outside your property will catch the eye of locals and passersby.
Agency Displays: Your home may be displayed in the agency’s window or included in their property booklets.
Flags & Auction Day Boards: On auction day, flags and boards will be placed to build excitement and ensure buyers know where to go.
Newspaper Ads: Local papers often run ads for auction properties, helping to reach a different audience who may not be online.
Creating a marketing plan
After listing your home for auction, your agent will put together a marketing plan that outlines how and where your property will be advertised. Auction marketing is designed to create a big impact over a short period, so the ads are usually larger and more eye-catching than for private sales. This can cost 1-2% of your property’s value, depending on the marketing options you choose.
The aim is to generate as much interest as possible before auction day, so the marketing budget needs to be agreed upon early. Your agent will help ensure the marketing reaches the right buyers while staying within your budget.
What documents will you need?
To authorise your agent to sell your home, you’ll need to sign an authority to sell document. This gives the agent legal permission to sell your property and outlines all the important details. This document will include:
- Your property’s address and any items (chattels) included in the sale
- The terms of sale, like how much deposit is required and the settlement period
- Marketing costs and your agent’s commission (which is negotiable)
- Whether your property will be sold vacant or with tenants
- The auction date and time
- Your reserve price (the minimum amount you’ll accept for your property)
This ensures everyone is on the same page when it comes to the sale of your home.
Setting your reserve price
The reserve price is the lowest amount you’re willing to sell your home for, and it’s one of the most important decisions in the auction process. Your agent will help you set a realistic reserve based on recent sales in your area and current market trends. It’s important to be open to their advice, as setting your reserve too high could lead to disappointment if the market doesn’t meet your expectations.
The reserve price is kept confidential and isn’t shared with buyers. On the day of the auction, buyers will compete to offer what they believe your home is worth, but they won’t know your reserve. Some vendors choose to wait until just before the auction to set their final reserve price, allowing time to assess buyer interest throughout the campaign.
Legal consideration around pricing
It’s important to understand that your agent must follow strict laws regarding how they advertise the price of your property. It’s illegal for them to advertise or suggest a price lower than their estimated selling range, as this can mislead buyers. Your agent also can’t give a lower price to buyers than what’s listed in your agreement.
If your reserve price ends up being higher than your agent’s estimated range, they’re required to inform any interested buyers of this. The agent will be transparent with you about these legal requirements throughout the process.
Why communication with your agent matters
Your agent should stay in regular contact with you during the auction campaign. They’ll keep you updated on the number of buyers attending open homes, feedback from interested parties, and how well the advertising is working. If necessary, they might recommend adjusting the marketing strategy to ensure you’re getting the best possible exposure for your property.
Regular updates and clear communication help build trust and give you confidence that your agent is doing everything possible to achieve a great result on auction day.
With my in-depth knowledge of the auction process and years of experience, I’m here to guide you every step of the way. If you’re looking for an agent who understands the ins and outs of auctions and can help you achieve the best outcome, reach out today—I’d be happy to assist!
