An auction allows potential buyers to compete for the property in an open forum which can result in a selling price that is above expectations. Knowing there will be competition for the property also makes the buyer reassess how much they would be willing to pay. An auction provides a true and transparent indication of the market value of the property.
Scheduling a date compels buyers to act now rather than biding their time. They know if they are not prepared to bid on the day they may miss out. If buyers are very keen to purchase, having an auction date set may also inspire them to make an offer prior to auction.
Marketing campaigns for an auction typically run for a period of 4 weeks, so that the vendors’ lives will be minimally disrupted by inspections. A drawn-out private sale campaign without a deadline can mean the vendor is preparing their home for inspection for many months.
Before the auction, the vendor can set a reserve price, which means the vendor does not need to sell unless that price is reached. This provides great peace of mind if the bidding falls short of expectations.
Once the contract has been signed, it will be unconditional and legally binding with no cooling off period. The sale will not be subject to finance approval, building checks or legal queries.
On auction day, when the marketing campaign has done its magic and the agent has brought together all the potential buyers, the result is now down to the quality of the auctioneer. An experienced auctioneer will build excitement about the property and create an atmosphere that engages the crowd. Through their spiel they will make every buyer believe that this property is the one for them so they cannot afford to miss out. A great auctioneer will encourage buyers to bid beyond the expected selling price.
At Marshall White, we have amongst our team some of Australia’s leading real estate auctioneers. While innate talent is a key component, our auctioneers receive dedicated and on-going training from some of the most respected and experienced professionals in the industry. They are educated to read the crowd and have the strategies to adapt to any scenario whether it’s a dynamic competitive auction or an auction that results in the property being passed in. Knowledge of the area is paramount if an auctioneer is to successfully sell a particular location’s attributes. Our auctioneers all specialise in their own localities and have a deep understanding of the local property market.
All of our auctioneers have a proven track record of achieving excellent results, so choosing an auctioneer can come down to a matter of style. Before deciding on an auctioneer, it is advisable to attend some auctions in person or online so you can see them in action.
During the COVID-19 pandemic, the restrictions on in-person auctions has led to a rise in the use of online auctions to sell property. The live-stream auctions, run on the Zoom platform, require buyers to pre-register with the agent and then bid in real-time. Online auctions work in the same way as public auctions but from the comfort of the buyer’s own home. Our agents have rapidly adapted to these streamed auctions, as have the buyers and the sense of excitement produces some excellent results for vendors.
Marshall White's service during our sale process in the difficult transition into the first lockdown was excellent. Jesse worked tirelessly to build and maintain momentum from our listing and open for inspection through to an offer within a short timeframe. Jesse's support and success in selling our house was really wonderful at such a stressful time.
A real estate auction is a public sale of a property, usually conducted by an estate agent acting as an auctioneer. Governed by strict rules, it is advertised for a specific date, time and place.
Prospective buyers offer bids and the property is offered to the highest bidder if it meets the price set by the vendor. Bids will not be accepted after the hammer falls. The successful bidder will then be offered the contract to sign. At a real estate auction once the contract has been signed, there is no cooling off period.
The reserve price is a sale price that the vendor decides is an acceptable price for their property, below which they will not sell. The reserve price can be changed anytime up to the commencement of the auction.
In discussions with the agent, the vendor decides on a price that they would be happy to receive for their property. The reserve price is completely confidential between the vendor and the agent, but it should be high enough for the vendor to be comfortable selling but not so high as to deter bidding.
If the bidding does not reach the vendor’s reserve price the property may be passed in. The highest bidder is then given the first right to negotiate with the agent on behalf of the vendor. If they cannot agree on a price the agent can invite other bidders to negotiate a sale price.
While we have offices in the Stonnington, Boroondara, Bayside, Port Phillip and Whitehorse municipalities and our focus of activity is within these locations, our agents are able to conduct real estate auctions throughout Victoria.
Any type of property can be auctioned at a real estate auction. We have experience in auctioning a wide range of property including residential houses, units and apartments, vacant sites, developments, commercial buildings, schools, medical rooms, holiday homes, farms and deceased estates.
A date and time is set for the online auction, which will be conducted on a platform such as Zoom. Buyers can register their interest with the agent who will forward to them a Zoom link to the auction. With the Zoom platform, bidders can call out their bids to the auctioneer or bid via the chat option.
A vendor bid is not an actual bid to buy the property but is made by the auctioneer on behalf of the vendor to start the bidding or to further progress the bidding. It must be acknowledged by the auctioneer that it is a vendor bid.