Handling Offers Prior
A very real senerio in the current market is providing the seller with an opportunity to sell prior to auction. All too often we are witnessing no understanding of the strategy when offers are presented.
This is an environment that requires a deep understanding of auction process, and when executed well, will either result in a successful sale prior to auction or a broader understanding of current market conditions. Poor execution can result in a burnt buyer, a seller with above 'genuine market' expectations or very little interest on auction day because you and the seller 'thought' you had it sold.
Firstly, legislation clearly suggests all offers must be presented, the art is in the presentation.
There are two types of offers; firstly an offer to purchase and secondly, an offer designed to 'graduate' the buyer towards auction day.
When the offers come, recognise the type, then deploy the correct strategy.
The basic fundamental of offer one is the offer must be unconditional to 'stop' the auction, the buyer is in line or in excess of all 'market' indications and you are extremely confident the seller is prepared to accept.
Offer two in reality is unbiased, factual information. This is the very best indication of what the market is suggesting. It's all in the delivery - best to remain Switzerland here.
The key question that you need to be asking yourself is - is this offer the right thing for my seller?
In many cases offers prior are presented from buyers with limited understanding or fear of auction day. It's up to you to empower and encourage all parties that auction day is without question the very best platform for all parties to negotiate.
When selling prior and selling post is off the table, there is only one option left.
All the best,
The Auction Group