Expert Advice with Ben Handler 07/12/2017
Buying a house through auction is not a simple process, especially if you have never done it before. Making a bid requires a strategy and a bold execution. And that’s where a professional bidder/buyer’s agent can assist.
Vendors and real estate agents alike love an auction for many reasons including the set timeframe, unconditional sale (no cooling-off period) and the protection of a reserve price. But mainly it is about the anticipation of competition and emotions potentially driving up the sales price to well above reserve.
With real estate agents and sellers increasingly favouring property auctions over a private treaty, the onus is on buyers to make the process work for them. The preference for an auction is not going away anytime soon, especially across Melbourne and Sydney where a housing stock shortage in popular suburbs is fuelling its popularity.
A professional buyer's agent knows more about bidding then the average punter because they have vast experience and understand the strategies employed at auctions.
Hiring a professional buyer’s agent/bidder to act on your behalf is the best and least stressful way to secure a property and here are the top 9 reasons why:
- They are experienced property buyers. A professional bidder/buyer's agent knows more about bidding then the average punter because they have vast experience and understand the strategies employed at auctions.
- They understand value. An expert has local knowledge and understands exactly what price you should be paying based on current market trends and extensive research.
- They have the ability to pre-empt auctions and get a deal done prior. With the right approach, avoiding the stress and time wasted on an auction can be a major benefit for both vendor and buyer.
- Anonymity. Having someone bid on your behalf and avoiding ‘being centre stage’ is attractive to many potential buyers.
- You can’t make the auction. A buyer’s agent will ensure you are well-represented on the day, and if required, will stay on the phone to you throughout the bidding process.
- You are concerned you will get carried away on the day. A professional bidder will stay calm and in control of the bidding to make sure you pay a fair price. Most importantly they will walk away if the price is too high.
- A professional intimidates the other buyers. Using a bidder who is clearly confident, gives you a major advantage.
- They know how to sweeten the deal. They understand quickly what will appeal to a buyer based on many factors including time of year, favourable terms and conditions or pending legislation that may affect the sale.
- You never lose with a professional bidding for you. The only time you will be unsuccessful at auction with a professional is when it goes over your budget or above the valuation of the place. However, even when you lose, you win by being saved from an unfortunate outcome.
AuctionWiz can connect you with the right buyer’s agent to bid on your behalf at a property auction eliminating the emotion and stress and making sure you don’t pay above your limit. Contact AuctionWiz.
Ben Handler is co-founder and CEO of Cohen Handler, a buyer’s agency
with over $3bn worth of properties purchased in nine years.
He is also into learning, reading and doing yoga and meditation
to bring mindfulness to his professional life
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.