Changing Course

One of our standout auctions this weekend was originally marketed with a price. At the first open for inspection, the agents were run off their feet with interest and found themselves submitting multiple contracts of sale to the seller. 
Sounds like the perfect cocktail to obtain a premium price right? 
Well, not really... even though the buyers were advised to put their best foot forward, we found they were reluctant to do so due to the dynamics created when in a multiple offer situation. The fear of paying well in excess of the competing offers was influencing the negotiations. 
At this early stage of the campaign our sellers were presented with two options... negotiate with the offers presented and sell or pivot and direct the interested parties towards an auction, they chose the latter.
The response from the buyers was extremely positive, now happy and relieved to compete in an open and transparent platform where competition is easily identified.
When auction day rolled around all the original buyers were now registered to bid and the reserve was set at the highest previously submitted offer. 
The auction was relaxed, more like a public negotiation. The buyers just knew it would be sold to the highest bidder. As result of competitive bidding in a transparent environment, it empowered the registered bidders to truly put their best foot forward. 
The result was outstanding. The property sold for well in excess of the highest previous submitted offer and the property sold to the people who submitted the lowest offer during the multiple offer situation. 
As a buyer, negotiating with trust and transparency is paramount. As a seller what more can you ask for, other than wanting the best from the market?  
Weekend auction results: 
Sydney (APM): 83% 
Melbourne (REIV): 82% 
Brisbane (APM): 52% 
Adelaide (APM): 66% 
Canberra (APM): 77% 
Perth (RP Data): 36% 

All the best, 
Gordon Macdonald