Numerous Aussies prefer selling and buying at auctions for reasons such as shortened time for transactions and opportunities for great deals.
Buyers can take advantage of the prices that are dictated by the participating crowd rather than the sellers.
James Pratt, CEO of James Pratt Auctions Group, highlighted the importance of the role that auctioneers play. They are in the position to control the direction, pace and outcome of an auction, he said.
“It’s important to [for auctioneers] to remain professional and available. I think it's wise to allow the agent to do the majority of speaking to bidders right before the auction starts and act as an intermediary between you and the bidders. This helps to ensure you can remain neutral. If you spend excessive (or even perceived excessive) time engaging with one or two bidders, other parties may feel it wasn’t a fair auction – especially if one the bidders you engaged with goes on to win," he told the Real Estate Institute of New South Wales (REINSW).
Pratt said auctioneers have the capacity to steer the course of action by directing the bidders' attention to a home’s perks, such as a pool, or harbour, city or bushland views.
Trial close is an option, according to Pratt. "[This allows] appropriate increments and re-selling, especially on luxury properties that have unique features," he said.
Bidders who have not been active in a session must expect to be wooed by auctioneers to join the bidding, especially during luxury-property fast trial closes.
Some prospective buyers opt to wait for a bargain. The golden rule to snapping up property in an auction environment is to do it as soon as possible.
Real estate group LJ Hooker said that when buying a home at auction, the purchaser must do their research ahead of time and strive to know what properties are for sale.
It is also essential to speak to a local agent. They can provide information on the state of the local market and give guidance based on recent auction results, local auction trends and clearance rates.
Finally, buyers must understand that each state has different rules and regulations on property auctions. It is essential to understand the requirements for the state or territory where the auction will be held.
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