It was the couple's first time at an auction. They'd managed to buy the four-bedroom Howick house, their first home together, with a pre-auction offer a decade ago, and they'd also purchased the new Waitakere property via negotiation - so they'd never experienced the auction process themselves.
"We'd seen auctions on TV programmes, but it is different when you are going through it yourself," says Fran.
These days many homes are sold under the hammer. Barfoot & Thompson list around 65% of the properties they sell this way, and data the company has compiled shows that auctions have the highest success rate of any sales method. For example, for properties brought to market in the last quarter of 2014, and sold by February 10, 2015, auctions had a success rate of 85%.
Barfoot & Thompson's research also shows that vendors who sell by auction are consistently the most satisfied with the price they achieve. That doesn't necessarily mean that they get "better" prices, but because the auction process is transparent, they can be assured that they got the best price the market was willing to pay on the day.
Markus and Fran couldn't have been happier with the sum they got, and they say it was their salesperson, Barfoot & Thompson's Janet Dickson, who made all the difference.
Not only did she have several serious buyers lined up and ready to put in their best bids on the day, but she also helped Fran and Markus to get the house ready for auction.
"We had already decided to renovate before we put it on the market, and Janet gave us great advice about what we should and shouldn't do to get the best results," says Markus. "She even passed on contacts for painters."
Thanks to her experience selling houses, and hearing the opinions of potential buyers, Janet suggested they paint instead of replacing old wallpaper, and she also recommended re-doing the decks.
"She also advised us to get the house staged, because by the time we had the open homes, we had moved out to our new place and it was empty," says Markus. "At the time it seemed like painful money, but in the end it was money well spent.
"We got great feedback about the presentation, and I think all of that helped."
He adds, "I don't think people realise how much hard work the real estate salespeople put into it. It's not just a matter of having a few open homes then turning up to the auction and collecting a pay cheque. Janet put in a lot of hard work for us and it paid off. We were very happy."
SELLING YOUR HOME BY AUCTION HAS LOTS OF ADVANTAGES:
• It is quick and simple. Instead of negotiations that can take days, an auction can be over and done in a matter of minutes
• Auctions are one of the most transparent ways to buy or sell a home. The terms and settlement days are known in advance and the fact that it is a public negotiation process means there is full transparency around what is a fair price
• Sale by auction is unconditional, so the successful bidder must immediately sign a contract and pay the deposit
• Sellers can reap the benefits of the competition that there is on the day of an auction to ensure they get the best possible price for their home
HOW THE PROCESS WORKS:
• Potential buyers register their interest with a salesperson
• If you are open to unconditional offers before the auction day and receive an offer that is acceptable to you, all other registered buyers will be contacted and the auction will be brought forward
• On the day, the auctioneer will ask for an opening bid and nominate the increments by which the bidding can be raised (for example $10,000)
• Once the bidding reaches the reserve price, the property is "on the market" and
will sell to the highest bidder
• The successful person is asked to sign the Sale and Purchase Agreement
immediately and pay the deposit (usually 10 percent)
• If the property does not reach reserve you can choose to reduce that reserve and put it "on the market" or pass it in, so salespeople can begin private negotiations with any interested parties
Barfoot & Thompson only hold "true auctions". They guarantee their auctioneers never make bids on behalf of clients, accept bids they believe to be made on behalf of clients or knowingly accept any bid that is not genuine.
Content series brought to you by Barfoot & Thompson.
