Selling? Do you understand the key auction terms?

You may have heard many of terms below, but you many not know what they mean.

Here is an overview of the main auction phrases:

Opening bids & bidding

After the auctioneer has run through the property being auctioned, detailed the features and an overview of the what is included with the property one last time, they will invite the buyers to put in an opening bid – or in other words for someone to place the first bid on the property. Other interested parties will then bid on the property in increments until either the property is sold or it is passed in (not sold).

Vendor’s Bids

A vendor’s bid is used to encourage bidding from buyers. Think of it as a momentum bid…..a bid to keep buyers interested, to keep the process flowing. This is placed by the auctioneer on the vendor’s behalf to assist the property reaching its reserve price.

The amount of the bid needs to be below the reserve price and must be disclosed to all buyers in the interest of transparency.

Dummy Bids

A dummy bid on the other hand is a false bid made by a non-genuine buyer. All dummy bids are illegal and attract significant penalties for the vendor, the dummy bidder and in some cases the agent. Professional auctioneers will not engage in dummy bidding.

Bidding increments

This is the amount by which bids increase during an auction and is usually dictated by the auctioneer.

On the Market and Passed In

If the bidding does not reach the reserve price or a price the seller is happy with, the property may be passed in. In this case your agent will encourage interested parties to stay behind to negotiate a sale with the agent. Don’t panic, in my 12 years’ experience a sale is normally made soon after the auction.

If the bidding doesn’t reach the reserve price, the auctioneer will ask you if you are willing to adjust your reserve and sell the property for the highest price. If you are, the auctioneer will announce to the crowd that the property is on the market or in other words, that it will be sold to the highest bidder. Sell my home in Troy.

The final and usual scenario is when the bidding has reached the reserve price. The auctioneer will briefly stop the auction and confirm with the seller that they are happy to sell at that price. If they are the property will be sold to the highest bidder.

Pre-Auction Offers

When you list your property for sale by auction, you still have the ability to accept pre-auction offers before the auction day deadline. All pre-auction offers need to be submitted in writing to your agent who in turn will present it to you for consideration.

However, in order for this to be rewarding, the offer needs to be solid and stand out to catch your attention. Otherwise, it may be a good plan to allow your property to go to auction and see what the market will give you for your home.

9 tips to sell your home faster to a younger buyer

If you think about it, when you put your home on the market to sell, the next owner will most likely to be younger than you are. If you’re selling your first home and upgrading, the buyer will often be a new first home buyer trying to get onto the property ladder. If you are downsizing from the family home, the buyer will most probably be another younger family with visions on raising their family in your home as you have done with yours. With this in mind, to appeal to them think about what they would want, what would make them fall in love with your home.

Generation Y (born 1980- 2000) and Generation X (born 1965-1978) represent today’s younger buyers and whilst there is a large age range of amongst this demographic, our real estate agents have found they often share similar features on their home buying wish list.

Big kitchen, open floor plan

A generation ago, having a separate dining room may have been on a buyers wish list. But as time has changed kitchens and family rooms have become the heart of the home – in essence the kitchen is the new living room. A kitchen that flows into a TV room is high on the list of the perfect home for younger buyers.

Younger home owners entertain more informally than generations in the past, so their desire for open plan living comes from how they see their home functioning while they have friends over. They want to be able to flow through the home rather than be restricted by sectioned off rooms.

Home office

With technology improvements and changes to the workplace, more and more Australians are working from home and all signs point to this trend continuing. This makes a home office, or a space that can be used as a home office, very important for many buyers.

Home offices have vast appeal not only for those working from home, but are popular for buyers looking for a dedicated space where they can concentrate on work, take a Skype call, plan a presentation, catch up on the heavy work load or simply pay bills.

Good location

Neighbourhoods have a big impact on the appeal of a property for young buyers as they know the impact it can have on the future value of their property. Whilst you obviously can’t change the neighbourhood you are in, highlighting popular location features of your area is important. Do you have good schools, low crime rate, access to reliable public transport, good proximity to amenities, a good walkability score, historic charm or are there future amenities planned that will benefit the area?

Low maintenance

Most younger home buyers grew up watching their parents spend their weekends doing their list of chores and aren’t keen to follow in their footsteps, a lot just want the simplicity of the turnkey solution and a home with low maintenance features is a winner.

Updated kitchen

The kitchen is the one room that can make or break a sale. It’s usually the most expensive room in any house, so prospective buyers don’t want to see a kitchen that needs a total upgrade. This doesn’t mean a total re-fit, but there are some small things you can splurge on that will help make your kitchen more appealing.

Enhance the bathroom

Young buyers today like beautiful bathrooms – they want a room they can relax and pamper themselves in. Consider making these repairs or changes if your bathroom is looking a bit scungy.

Technology

A generation ago, buyers didn’t care about technology in the home, but today this is a key feature. Buyers want to know about tech. They want to hear about the quality of the wireless service and internet.

A properties appeal can be increased or diminished because of the strength of mobile carriers signal or its internet service provider options.

Energy efficiency

Whilst this doesn’t directly impact the successful sale of a property, we have found that younger buyers are often highly concerned with the rising costs of their utility bills along with a having a greater environmental consciousness. With this in mind, many young buyers consider the energy efficiency of a property and then factor in the costs to update this post purchase.

Pre-approved or draft renovation plans

Just as studies show that decluttering and styling your home can help make your property appeal to more buyers, so too can have approved renovation plans or at least a design that would help young buyers visualize how they can add value and grow the property’s value in the future.