Strategy & Process For Auction

SMART Facts

• Overview of the campaign so far
• Positive & negative thoughts from the market
• Summary of price feedback
• Property views on web portals
• Have we received any offers throughout the campaign?
• Have there been any building inspections completed?
• If so, what were the amounts, conditions & the likelihood of attendance
• Who are our potential bidders?

3 Types of Auctions

• Scenario A (Every vendors dream | 12-24 months ago) | 7-10 registered bidders | 5+ emotional/competitive bidders | Sells For Above Reserve
• Scenario B (A normal market | 6-12 months ago) | 3-6 registered bidders | 2-3+ emotional/competitive bidders | Sells For Reserve/Amended Reserve
• Scenario C (Current status of Auctions | Now) | 1-4 registered bidders | 0-2 emotional/competitive bidders | Extended Negotiations/Potential “No Sale” Scenario

Probability of Sale

• 1 Bidder/Registration | 61% probability of sale
• 2-4 Bidders/Registrations | 72% probability of sale
• 4-6 Bidders/Registrations | 91% probability of sale
• 7-10 Bidders/Registrations | 95% probability of sale
• 10+ Bidders/Registrations | 100% probability of sale

Control Grid: Who Controls The Auction?

• Who controls the Auction?
• 3 segments of Auction
• Timing & minimal pauses

3 Prices of A Vendor

• What does it mean to sell on the day? What does it provide you with?
• 3 prices of a serious vendor
• Value of an unconditional cash contract in today’s market

Setting the Reserve Price

• What does reserve price mean? And what happens when it reaches reserve?
• Strategy of announcing the property ‘On the market’
• The strategy of where to set the reserve & the psychological behaviour of a buyer on the day
• The importance of setting the reserve at the right level to ensure the sale happens on the day