3 Things Buyers Can Learn From Attending An Auction
The atmosphere created when a property is auctioned is often tense and exciting. The sense of urgency generated throughout the marketing campaign culminates on auction day with the knowledge that the property could sell to a buyer in a mere matter of minutes.
Regardless of the auction outcome, there are many benefits that property buyers can gain by merely attending one.
Here are a just a few things that property buyers can learn from being a spectator at an auction.
Level of Interest
I’ve been to hundreds of auctions in my career and it’s fair to say they are all very different. Some start out slow then build momentum quickly. Some are over no sooner than they begun with an early knock-out offer.
Truth is you only need two bidders to have an auction but sometimes there can be twenty parties who have registered to bid. Bidding might go up in small increments or perhaps consist of a handful of large double-digit bids.
The point is unless you attend an auction for yourself you won’t get to see any of this. As a property buyer don’t underestimate the insights that come from watching an auction live.
Actual Result
Just because a property is put to auction doesn’t necessarily mean it will sell on the day. If it does though you will certainly know the outcome and that there was sufficient interest in the property to generate a result that satisfied buyer and seller.
When a property doesn’t sell on auction day you still get to learn a great deal. If it didn’t sell why not? Was it due to lack of interest, perhaps no bidders? Or was it more a case of price? Perhaps numerous bidders that just weren’t prepared to pay an amount that an unrealistic seller wanted.
Regardless of the result pay attention. Watch, listen and observe.
End Sale Price
When the market is strong selling agents like to boast and broadcast when record sale prices are being achieved. That means just about anyone and everyone will know exactly what a property sold for.
But when the market turns and the going gets a little tough quite often the exact opposite occurs. Selling agents tend to go to ground and stay silent on sale results which can hide the true state of the market. This puts property buyers at a distinct disadvantage as the best way to figure out what to pay for a property is to look at what others have sold for.
Attending an auction in person gives property buyers more control as you as you get to see for yourself the actual sale price.
Shelley Horton is the founder of Sydney based exclusive buyers agency Albion Avenue. With a 20 year career honing her skills in every aspect of the property industry Shelley knows what makes a property worth buying and how to get the best deal.
