What if the House Doesn't Sell?

When you put a property up for auction you have to be prepared for the fact it might not sell. Just like when houses go on the market conventionally there is a chance the right buyer just isn’t out there at that moment in time. It may simply be that while everything was right about the sale and the marketing process there just wasn’t anybody out there looking for a house like yours. However while that can’t be helped there are some steps you can take to ensure a sale next time if your property doesn’t sell at auction the first time.

Lower The Reserve Price

Sellers set a reserve price to ensure they too get a good deal at the property auction. They do not want to let their house go for much less than it is worth so they set a reserve price which indicates how high the bidding must go before the property can be sold. This is a safeguard for the sellers. However if your house doesn’t sell at auction perhaps you need to review the reserve price. Is it much too high? Are you missing out on potential buyers because your reserve price is extortionate? Speak to the auction house and to local estate agents to find out what a good reserve price would be before putting your house up for sale at auction again.

Lower The Guide Price

The guide price is what buyers see first. This is the price the seller and auction house set to attract the buyers. It is usually set lower than the seller intends to sell (the reserve price is in place as a safeguard) in order to attract potential buyers. The buyers get involved in a bidding war and of course the price soars but the guide price is what initially attracts them. If your house didn’t sell at auction perhaps your guide price was too high? Buyers want a bargain remember. Lower your guide price to attract more potential buyers.

Prepare Your House For Viewings

Perhaps the problem is all in the viewings. When potential buyers come to see your house they want it to look like somewhere they could live. The big mistake sellers make when it comes to viewings is nothing to do with cleanliness, it is all about personal touches. Most sellers clean their house from top to bottom before a viewing but they leave too many personal touches around such as photographs and too much of their personal taste. Make the property a blank canvas so potential buyers can envisage themselves moving in.

Try Another Auction House

If all else fails perhaps it’s time to try another auction house. The auction house you are with may not be marketing your property correctly. As in all areas of business there are good and bad. Perhaps you should try a better auction house. Get tips from others who have sold at auction, where did they sell? What was their experience like? Using a highly-recommended auction house is likely to deliver the results you want.