Selling by Auction? Don’t Go.

I was chatting to a gent who was selling his home via auction last week.

He was a bit concerned - his wife was working the night of the auction.  It was scheduled at a time that she was just unable to get off and he was under pressure from his agent to get a power of attorney signed by his wife so he could make decisions on their collective behalf at the auction. He was feeling uncomfortable.

I asked whether he was ready for the auction - he was confident they were. They had spent quite a bit of time objectively assessing the market and had set a reserve price they were happy with and that represented their true ‘bottom line’.

So I said - Do you want the advice I give to sellers for their auction? 

“Absolutely” was the rely.

Don’t go to the auction.

“Huh?” he said.

That’s my advice for auction sellers. Don’t go to the auction. You have done the work to objectively establish a reserve price, you are comfortable that is your bottom line. Why do you need to be there? 

“Well my agent is insisting I am there and that I have power of attorney to act for us both”.

Why?

He thought about it. "Because if something comes up at the auction and there is something that we need to sign. They also need me to sign the paperwork if/when it sells".

I reminded him that the auction paperwork authorises the auctioneer to sign the paperwork on his behalf if the sale reaches reserve. What could possibly come up that requires you immediately to make a decision and authorise it?

“I don’t know really"

How about if the sale does not reach reserve?  Then you are there and feel the pressure of doing something in the glare of the auction room. To potentially compromise on your bottom line. 

Why put yourself under that potential pressure?

“Mmmmm (the polite version of what he said), I didn’t think of that. I’m going to talk to my wife. There’s no need for her to be there, or to sign a power of attorney”.

If you have set a true reserve there is no need for you to do anything at the auction.  You shouldn’t be making decisions “on the fly”.  An experienced agent and auctioneer will have reviewed the various scenarios with you prior and there is no need for “instructions” to be given in the heat of the auction.

Why put yourself under pressure - don’t go. If you do go to watch the “show”, instruct the agent to leave you alone - if it doesn’t reach reserve pass it in. 

Why revisit a decision taken objectively and carefully when you are in the public glare and pressure of the auction?