Listing House for Auction Mid Jan - Good Idea or Stupid Mistake?

Chrool on 21/11/2023 - 19:41
Last edited 21/11/2023 - 20:14 by 1 other user

Hi OzBargain, long time listener first time caller.

I'm looking to sell my house next year and was cold called by the REA who I originally bought it from, who then pushed very hard to get me to list for sale by auction on 20th Jan 2024 (only 3 weeks of inspections but a week online for 4 weeks of 'viewing'). He initially convinced me by pointing out that demand stays constant but supply for housing will be low in January due to lack of listings and that I had to take advantage of this to get a better price. he also pointed out that I have a very average house that wont stand out (3 bed, 2 bath, 45 years old, 1/4 acre in Melbourne's east)

Now I'm having second thoughts that he just wants something on the books to tie him over until things pickup again. I can see from stats online that clearance rates are at least 10-15% less than February.

I should point out too that i'm hauling a$$ to get things ready in time

Am I being taken for a ride? Is it worth pushing back and trying to get a later date?

Home & Garden

Comments

  • MS Paint on 21/11/2023 - 19:51
    +4

    Why would you not believe the RE Agent?

  • hasher22 on 21/11/2023 - 19:57

    I believe snake oil that cures cancer than a REA

  • SBOB on 21/11/2023 - 19:58
    +8

    was cold called by the REA who I originally bought it from

    nothing says desperate like an REA trawling through their old contacts books.

  • Porker on 21/11/2023 - 20:10
    +2

    I sold a few years back and what I could deduce, there's never a 'right' time to sell as such. There's always a bucket load of buyers around and supply is still relatively low.

    What I'd be looking for is how the house is listed price-wise and careful with what the agent says and/or what you instruct to them. Eg. If you list the house for say $1mil to $1.1mil with intention of going to auction, but in the intervening time receive an offer of $1.2mil and DON'T accept it, then you'll need to revise the listing range which could impact the amount of buyers.

    The agents will tell you that they want buyers to come in have two or three bid against each other to drive the price up. However, if agent is not clear and receives the offer of $1.2mil and you reject it, then a price revision may be required at which point the agent will likely pressure you to accept that $1.2mil or else lose MORE time with a price revision and the interest of buyers, plus the property will become stale etc etc.

    To combat this, your instructions could be as clear as list price range and going straight to auction, ie. Not accepting any offers.

    • Chrool on 21/11/2023 - 20:12

      thank you for the advice!

  • AndyC1 on 21/11/2023 - 20:26
    -1

    Love 4 weeks and the 20th Jan is 8 weeks away.

    Looks like OP or REA cannot add up or are not giving the correct info.

    RUN…..

  • CheapandUsed on 21/11/2023 - 20:58

    Another consideration..

    There is unlikely to be another interest rate rise in December according to the expectations via the ASX RBA Rate tracker..

    However, the following RBA meeting will be in February and then they will only meet every 6weeks. If inflation and their other considerations are still above target there could be another rise on the cards then.

  • Seraphin7 on 21/11/2023 - 21:16

    Personally, I wouldn't go to auction in January. While there are "always" buyers, there will clearly be a larger than normal proportion who just couldn't be bothered looking at property over the Christmas period. For mine, that has the potential to reduce (and certainly not increase) the demand for your property.

    It could be argued that it will really only keep away the tyre kickers, but there will be many who just don't have the ability/appetite to be dealing with inspections/auctions at that time.

  • wobblydrow on 21/11/2023 - 21:37
    +1

    Two brother I law's are both REAs and both take all January off in Melb, little interest as everyone preparing for Xmas in December and then new year holidays. You can scrub any open house numbers in first two weeks of Jan to next to zero.

    Your not going to likely get best return but you REA will have a nice extra pay day.

  • garetz on 21/11/2023 - 22:09
    +1

    Looks like they are taking advantage of you.

  • Benoffie on 21/11/2023 - 22:11

    I sold in January this year. It is hard work over the Xmas period as places shut down and you cant get stuff in.

    However, there was no shortage of buyers. The top bidder was an investor who wanted to rent it and that turn around in March suited him.

    Unless you're in a market dictated by huge workforce movements or the likes, im not convinced it matters.

  • rumblytangara on 21/11/2023 - 23:04

    You mean the viewing times are when half the population is away on holidays?

    Brilliant.

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