How To Get The Best Out of Property Auctions

house auctions

Auctions are emotionally charged events for both sellers and buyers alike. But if you get the combination of elements right you can achieve an exceptional result. To execute an auction successfully, a fine balance of ingredients need to line up — the property, the marketing, the price, the timing, the agent and the auctioneer. If just one of these elements is wrong, things can go very pear shaped.

Generally we recommend an auction process for properties likely to appeal to a diverse group of buyers. For vendors, the benefit of an auction is that it sets a deadline for the sale — approximately 30 days from listing to auction, motivating buyers to make a decision and encouraging competition.

Auction nerves can hit sellers as well as buyers so it’s important to have a good real estate agent and good auctioneer who can control the situation and keep things moving in the right direction. Remember, trust in expert advice and discard advice from friends, neighbours and family. Even if they have the best of intentions, 9/10 times they will put forward opinions based on personal beliefs and emotion rather than being based on solid facts.

Remember, not every property is suited to an auction so even if you believe it is the best option, make sure your agent agrees with you, as they will be able to gauge what’s happening in your local market and in your price range. If you’re selling a “cookie cutter” property in a soft part of the market, an auction should be avoided.

If you are a buyer and are looking to purchase a property that is going to auction, the key to being successful as a bidder is to arrive prepared with nerves of steel. Make sure you have done all your searches (building, pest, strata) and have had your solicitor or conveyancer check over the contract, making any changes prior to the auction.

Calculate how much you can afford to spend before attending the auction, and whether you have room to manoeuvre beyond your wish price. It’s not a great time to pull out the calculator, trying to work out your last few bids when the auction pressure is at its greatest. Your mortgage broker and financial advisor will be able to give you good advice so speak to them and crunch the figures before the auction day.

On the day of the Auction, make sure you get there early. The last thing you need is the stress of finding the venue or a car-space. Believe us, the stress of auction is enough adrenaline for the day! We recommend taking a friend or adviser. Don’t go it alone. Everyone needs moral support & an experienced hand can go a long way on such occasions.

At the auction, catch the eye of the auctioneer and bid whilst remaining externally cool (no matter how much of a nervous wreck you are on the inside). Bid like you’re never going to stop (within your limits of course – never forget your maximum price limit). If you look like you’ll never stop, others will be intimidated and may drop off, thinking they don’t have a chance.

If you have your heart set on a property don’t be scared off by the auction process. Remember, you don’t want to be 5, 10, 20 years down the track wishing you bought that special property that is now worth a fortune and out of your reach! Give it a go…you may well be popping champagne and moving in to your dream property in no time! Good luck.

Interesting stats from the Sydney metro Super Saturday auctions when you break them down by price. This reinforces the strength of the market below $750K.

  • Sub $750K – 80% sold
  • $750K-$1M – 62% sold
  • Over $1M – 60% sold

For specific advice on the auction process call us today.

Tim Cullen on  0424 006 855

Bernadette Cullen on  0414 618 908

About Tim Cullen

Since joining McGrath Estate Agents 15 years ago, Tim Cullen has defined himself as a first class industry leader with an outstanding track record and rapidly growing and loyal client base. He ranked 1st on the Northern Beaches in this year’s Real Estate Business’ Top 100 Agents List and ranked 21st nationwide.