Recently I had the pleasure of Auction Bidding on behalf of a client. This beautiful waterfront property was amazing and there were several interested parties that thought so too.
I love a good Auction!! I can feel the excitement of the crowd and the nervousness of first-time bidders, “is this the one” “will this be my home today”.
But who are Auctions really for?
Due to their competitive nature an Auction is used to drive emotion up in the bidding participants in the hope that they will compete right to the end of their budget to win! Delivering the highest possible price for the Seller and then to set a higher market price for the neighbourhood. If it is an unusual property Auction can help the market decide the value of the property. Your Real Estate Agent will be doing everything they can to get a bigger crowd and more bidders to showcase how well they can get a Seller the highest price possible. This will encourage more people to use their services in the same way.
Is this a good way for a buyer to purchase?
Our preference is to purchase outside of Auction Conditions, however if this is the property you want then preparation is essential to purchase at Auction! An Auction this is an unconditional contract meaning if you are the successful bidder, there is no getting out of it, you now own the property and if you don’t pay for it then you can be sued. Always do your research, inspect the contract, get a Pest and Building inspection and work on your Auction Strategy. Most buyers like to have a little wriggle room with a cooling off period and the opportunity to have all finances fully approved. You must also accept the terms and conditions that the Seller has set in the contract without the opportunity to ask for a smaller deposit or settle on a day that is more convenient to you. Only if the property passes in can you negotiate a lower price and better terms and conditions
Some Buyers are very nervous about bidding on the day, they may like to remain anonymous, don’t like the competition, may be at work, live interstate or overseas, or may find the crowd and staring at your competition whilst calling out a bid against them to be daunting, Real Estate Buyer Services provide an Auction Bidding Service in Brisbane for this reason.
On the day there were four parties bidding including myself, bidding opened at a low number of $500,000 and quickly jumped to $900,000 and then $1 Million, bids then started to come in at a lower number of $10,000 lots and then $5,000 lots. One buyer on the phone bidding dropped out before $1.1 Million and another at $1.15 Million. Two other bidders fought it out slowly to $1.23 Million where the bidding stalled, and the agent took the bidder away to further negotiate and came back to announce the property on the market and open the bidding up again at $1.27 Million. With no further increase in the bids the Property was sold to the highest bidder.
While we were not the highest bidder on the day, we felt that our research of the area including recent comparable sales and potential for the area were spot on and did not want to overpay for the property.
Call Real Estate Buyer Services on 0420654325 to make your Auction day exciting and stress free.