Problem is Sydney and Melbourne are renowned auction capitals so if you are intent on buying a property there, then there is a very good chance you will have to bid at auction in order to secure your dream property.
And to make matters worse, auction clearance rates in Sydney and Melbourne are currently at historically high record levels, so if you want to be in with a winning chance at auction you will need to bid and bid well.
If you’re contemplating buying a property at auction keep reading to find out what are the signs you need to look for that signal you might need help.
Make no mistake the very purpose of an auction is to generate a competitive atmosphere.
An auction creates a sense of urgency by the mere fact if an acceptable price to the vendor (the reserve price) is reached on the day, the property will be sold to the highest bidder.
Auctions can play on your emotions. They can force you to make decisions in the heat of the moment whilst under pressure. In some markets, auctions are a very effective way of selling property.
It’s important to recognise there are quite number of professionals you will come across in an auction scenario.
Firstly, there’s the selling agent who is representing their client (the vendor) and only has their best interests in mind. The selling agent’s role in an auction campaign is to promote and market the property to as many people as possible in order to draw in as many interested parties.
Secondly, there is the auctioneer. The auctioneer’s role is to create excitement and confidence amongst buyers by encouraging and taking bids on the day. The auctioneer is specifically trying to generate a result that will ensure the reserve price is reached and the property sells for the highest price. If you ask me nothing beats watching a great auctioneer in action.
Thirdly, especially in the auction capitals of Sydney and Melbourne you may very well come across an experienced auction bidder or buyers agent. Their role is to represent their client (the buyer) when bidding for a property. A buyers agent is experienced at bidding at auction and strategic in how they place bids. They will give their clients the very best chance of being the winning bidder.
If you’re looking to buy a property at auction here are a few signs you might need some professional help:
There really is no comparison in my view. If you are contemplating getting someone else to bid on your behalf at auction, I strongly recommend you get an experienced buyers agent rather than simply asking a friend or family member to do it for you.
Don’t forget all of the other experts that will be there on the day as well. For a relatively small outlay, why not engage your own expert to fight it out for you in the bidding?
It will give you a competitive edge and set yourself up to be in with a real chance of securing your dream property.
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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.
The atmosphere created when a property is auctioned is often tense and exciting. The sense of urgency generated throughout the…
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