Top 7 Reasons Why Properties Pass at Auction

If you are unfamiliar with the auction process, purchasing or selling a property through auction can be a daunting experience. While there's always an element of unpredictability when it comes to auction results, there are several common reasons why a property may pass in.?

In this article, we'll explore seven factors that can influence the outcome of an auction and what you can do to avoid them.

Firstly, unrealistic vendors can be a significant barrier to a successful auction outcome.?

In a declining market, comparable sales may no longer be relevant, and vendors may set their price expectations too high. This can result in a property passing in at auction because it's overpriced compared to similar properties on the market.

2 - Not spending enough money on a high-quality digital marketing campaign can be detrimental to success!

A tailored marketing campaign is essential to attract the best buyers and generate interest in the property. The right amount of money spent in the right areas can make all the difference in any market.

3 - Poor presentation and a lack of styling can affect a property's interest amount.?

Staging a property is a crucial element of securing the best price. A property without furniture or artwork can lack emotional appeal, resulting in a lower sale price.

4 - Hiring the wrong selling agent can significantly impact the outcome of an auction.?

Selecting an agent based on price alone can be a recipe for disaster. Working with a reputable agent who understands the local market and has a track record of success is essential.

5 - A lack of interested buyers can result in a property passing in at auction.?

A finished product is more likely to sell under the hammer in the current market. Properties that require significant work may generate less interest from buyers. Additionally, a property located in a B or C-grade location may struggle to sell at auction in the current environment.

6 - The timing of the sale

Understanding the local market and the competition can impact the result you achieve. For example, if several similar properties are already on the market, it may not be the best time to come to market.

Lastly, a property may have structural defects, termites, Positioned poorly or a history that turns buyers off.?

It's crucial to conduct due diligence before bidding at auction. We can help arrange a review of the contract of sale and vendor statement within 24-48 hours. We also have access to professional building and pest inspectors who can look for major structural defects and termite activity.

In conclusion, understanding the factors that can influence the outcome of an auction is crucial to achieving a successful sale. Working with a reputable agent, investing in a tailored marketing campaign, and conducting due diligence can all contribute to a positive result.

Take advantage of our latest video to gain valuable auction insights and bidding tips from Andrew Date, a property professional with over a decade of experience in Melbourne's property market. In this video, Andrew will give you a closer look behind the scenes of a live auction in the Bayside suburb of Black Rock.?

Industry Insider is an independent advisory company committed to helping buyers & sellers achieve their desired outcomes. Our experienced team will guide, execute, and deliver the best possible results for your property purchase. To save time, reduce stress, and potentially save or make money in the long run, hiring a buyer's agent or selling advisor is your secret weapon when buying and selling a property.

Contact us today via phone at +61 8374 7652, email at?[email protected] , or text message at +61 402 346 810 to learn more about our services and how we can help you buy or sell.

If you want to see our recent activities, please click this link:?linktr.ee/Industryinsider

Industry Insider Property

Level 3, 489 Toorak Road, Toorak 3142

+61 8374 7652

+61 402 346 810

industryinsider.com.au