Vendors planning to follow in the footsteps of the Hamilton real estate agent who sold his investment property at a no-reserve auction should be very careful.
That’s from property commentator Alistair Helm.
He says Trevor Palmer was successful in his auction, selling his property for $232,000, not because of the method used but because of the amount of publicity it generated.
The CV for the property was $240,000.
“He knew full well that if he generated enough interest through advertising to create some competitive bidding the property would sell for what the property was really worth … Property is sold for what a willing buyer is prepared to pay and a willing seller is prepared to accept. Ensure the property is well marketed and you will create the right environment for a true sale - that is what happened this time.”
Helm said this would not open the floodgates to lots of other vendors wanting to sell at no-reserve auctions.
“All he did was take advantage of the uniqueness and media interest in the marketing tactic (not a new concept) of having a no reserve auction to generate interest - and interest he did generate as the coverage in the NZ Herald gave him massive free advertising ensuring everyone would be keen to see what it sold for and ensure the property was made known to prospective buyers.”
Helm said the risk of a lower-than-acceptable sales price would rise as the novelty factor lessened.