How To Get The Best Out Of Property Auctions

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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 needs 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 quickly go bad. Generally, we recommend an auction process for properties likely to appeal to a diverse group of buyers.

Auction nerves can hit both sellers and buyers so it is important to have a great real estate agent and a strong auctioneer who can control the situation and keep things moving in the right direction. Remember to trust in expert advice and discard advice from friends, neighbours and family. Even if they have the best of intentions, they will most likely put forward opinions based on personal beliefs and emotion rather than solid facts.

Also, remember that not every property is suited to an auction so even if you believe it is the best option, ensure that your agent agrees, as they will be able to gauge what is happening in the local market and in your price range. If you are selling a run-of-the mill property that offers no special or unique features in a soft part of the market, an auction should be avoided – you should opt for a private treaty sale instead. This is largely because the property may not create enough emotion from buyers to generate competitive bidding. In a hot market however (like we are currently in) auctions are proving to be a very good option. To see an example of a recent property auction we conducted on the Northern Beaches of Sydney, check out the video below. You will hear from the vendor, the buyer and the auctioneer… so it will give you a great insight into the auction process.

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.

For further advice regarding auctions or for any general real estate advice, call us today on 0424 006 855! We look forward to being of assistance.

About Tim Cullen

Since joining McGrath Estate Agents 18 years ago, Tim Cullen has defined himself as a first class industry leader with an outstanding track record and rapidly growing client base. He consistently ranks in the top 50 agents nationwide in the Real Estate Business’ Top 100 Agents List, ranking as high as 21st in Australia. He is passionate about real estate and delivering premium results for his clients.

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