What happens when a property is passed in at auction?

By January 19, 2018Selling

After all the preparation and hard work, it can be disappointing if your property is passed in at auction. But even though it didn’t sell in the auction, it’s not the end of the road for selling your property. A good real estate agent will have a strategy in place to make a successful sale post-auction. We take a look at what happens after a property is passed in and what steps to take to sell.

 

What does “passed in” mean at auction?

A pass-in occurs when the top bid is below the reserve price, meaning the property doesn’t sell through the auction process. From there, the highest bidder can negotiate with the seller. This often happens immediately after the auction and the property still might sell on the same day, despite the bids not meeting the seller’s expectations.

A property can be passed in for a number of reasons that aren’t related to the property itself. A slower market, fewer bidders and cautious buyers can all contribute and there is still a strong chance of selling through post-auction negotiations or private sale.

What to do after your property is passed in at auction

It’s easy for emotions to be high after your expectations aren’t met at the auction, but it’s important to approach the negotiation rationally. This is where an experienced real estate agent who knows your local market is an asset – they’ll have no emotional attachment to the property and will be able to negotiate the best result.

Your agent will have plans for the negotiation, which may include:

  • Speaking with other bidders after the auction to determine their interest and maintain some competition to get the highest possible price
  • Making a counter offer that might ask for more money or a different settlement period
  • Being firm on your desired price and the deadline to make an offer

Marketing your property after auction

A good agent will have already planned a marketing strategy for the property in case the auction is unsuccessful, which they will put in place if you decide to sell privately after the auction.

  • Reviewing your pre-auction campaign to identify any areas for improvement, such as better advertising
  • Using their expertise and networks. For instance, Chadwick’s team of 17 agents work closely together to identify opportunities across each other’s client portfolio, often resulting in finding a suitable buyer
  • Strategic marketing through email and social media, using the right message to find interested buyers
  • Using popular real estate website advertising to attract new potential buyers

If you’re looking to sell your property at auction, speak to the experienced Chadwick team today.

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