"Playing the game": vendor auction strategies

I am about to put my Dad's house up for sale by auction (NSW). I don't have to sell it, and if I don't there are at least a couple of other options.

I'm fully aware that agents like auctions. I'm not overly keen on auctions but in that area it is the typical method. I met with 4 agents and their price guides were overlapping but realistically there was a 20% range - and there haven't been any recent similar properties available.

I'm happy with the agent I have picked, but am not very trusting . I have not given any price expectations, and will let that develop over the period of the campaign. I do have a $ figure in mind which is about the middle of the suggested ranges. I have told him to pass on any offers and he has suggested there *will* be offers before the auction. Like I said, I'm not very trusting!

The agent has told me to expect requests for a longer settlement which I am ok with to some extent. If I agreed to a longer settlement I am inclined to think I would not agree to a lesser deposit as well.

I saw another poster suggesting having the reserve price into a sealed envelope for the auctioneer.

For those with experience, what other tips do you have for the vendor?

 

In the scheme of things though, those bills are relatively trivial - I'm probably only considering an extra 6 weeks (?). I'm certainly not going past the insurance renewal date! I can go past 31 Dec which might be attractive to a purchaser (avoid land tax). No land tax on my end.
Problem with having a longer settlement is that I need to agree to it before I know I'm getting a good price for the property in return, where in private treaty I have more negotiating power.

 

It sounds as if you are playing a game against yourself...

At the end of the day, the house is only worth what it is worth - That figure will be found out on the day of auction.

To save everyone wasting their time, you need to have a think about the price that you would sell the house for.

If you get an offer before auction, I would think that it would need to be a solid offer, if there are any other conditions, then you could expect to have some 'consideration' given for those.

Here is an example:

Let's say that you are comfortable that the place would sell for $500k under the hammer.

Prior to auction, if I was confident that it was going to sell for 500K, then I would not accept below or near 500K, might as well roll the dice on the day and see if some people get emotionally involved and spike the auction.

If I was not confident, then 490k in the hand could be better than a disaster than 450 under the hammer.

If someone wanted a longer settlement, then again I would consider that a house that would be worth 500k, could now extend to perhaps 510K.

When you are meeting their needs, you can expect to receive some financial love. Alternatively, if they meet your needs, then you could expect to give some love.

An example of this would be, I would take a $495k all cash, no conditions over a $500k subject to finance/building/pest.

But at the end of the day, it all comes down to the figure that you will accept, there is no need to keep a reserve in an envelope, and the agent would prob think you are a weirdo for doing so.