Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

Posts Tagged ‘no reserve auction’

How do you sell in a buyer’s market?

Posted by Steve Koerber on January 9, 2009

I realise that most people reading this blog are currently neither buyers nor sellers of real estate in Auckland. 

However, if you are considering buying at the moment, I envy you.  You have plenty of choice.  If you’re clever and well researched you’ll make a safe purchase.  Like all long term residential property owners in Auckland since the 1950’s, you’ll probably achieve a similar long term return and be glad you bought when you did.  Trying to time the real estate market is a mug’s game.  For long term success, the most important thing is to play the game and get into it.  

If you’re a seller, you might be wondering whether it is a good time to sell.  The answer is simple.  If you need to sell, you should.  If you don’t need to sell, it might be best to wait for a while. 

If you’re currently on the market and you don’t need to sell, your home is probably priced above the market.  A positive outcome is that you’ll be helping those who need to sell, to sell.  Because a real seller’s price will look better than yours, buyers will be drawn away from yours to theirs.

So, if you really want to sell, should you simply price your home low?  Should you set a price then drop it regularly until you sell?  I believe the answer is no!

Recently I’ve helped many real sellers achieve good sales (within a 4 week time frame) by not pricing their homes at all.  How have I done this?

Instead of telling potential buyers what they should pay for a home (ala having an asking price), I’ve simply asked real buyers to nominate what they would be prepared to pay.  I’ve then shared their opinion with others who have expressed interest.  By sharing this valuable information amongst a group of people that have all expressed interest, I’ve been able to A) sell the home to the keenest member of the group, and B) convince them to compete with other like-minded people within the group. 

At the right price level you’ll always find a buyer, or two or three or more.  I love the “no reserve” auction concept as the purest and quickest way to establish a property’s market value. 

A “no reserve” auction is a little scary for most sellers to seriously contemplate.  However, if done right, with appropriate marketing exposure and hype, it’s actually a pretty safe bet for sellers who really need to sell.

If your’e a little less adventurous you can always try a standard “reserve auction” and maintain a bit more control over the sale price.

Posted in Buying a home, Selling your home | Tagged: , , , , | Leave a Comment »

$1 Reserve and No Reserve auctions

Posted by Steve Koerber on May 31, 2008

Yesterday (31 May 2008) a West Auckland home went under the hammer with a $1 reserve price and fetched $395,000.  The owner had paid $400,000 for it 12 months earlier.  At the time of writing this post, many owners who purchased 6 or 12 months earlier are selling for 5 – 10% below their original purchase price.  Many sellers who are pricing their homes just above what they paid 12 months ago are not receiving any offers and are experiencing (and arguably contributing to) a “slower” market.

Since 1999 I have conducted two “no reserve” auctions.  Both of them were very well attended and both properties sold for good prices, very close to vendor “hope” prices.  If marketed widely, no reserve (or $1 reserve) auctions are a great way to sell.  I know of another “no reserve” auction that sold for a good price also.

Every time I hear “no reserve” auctions discussed, I hear people say “they’re not for the faint-hearted”.  Based on the results I have observed, I would have to disagree.  They work well.

Has anyone heard of a “no reserve” or “$1 reserve” property auction that has failed dismally?  

Posted in Opinion, Selling your home | Tagged: , , , | Leave a Comment »