A lot of buyers I come across are scared of auction and don’t like to go to them, often discounting properties that are being marketed by way of Auction. If you are one of these people, you are missing out! Auctions are actually really good to buy at, let me show you why:
Buying at auction is a very simple process. You get to know that day if you have brought the property, or not, and you are unconditional. If you are successful – fantastic! If you aren’t, there are plenty more fish in the sea.
You only pay the market price
You don’t need to worry about paying too much at an auction, as you will only ever pay slightly more than what the next person is prepared to pay on the day.
Unlimited opportunities to buy
For the duration of the auction you get unlimited opportunities to buy, it’s not like a multiple offer situation where you only get ‘one shot’. Keep going until you reach your limit.
See your competition
When you are at an auction you can see all your competition, so you know who you are competing against and potentially adjust your strategy if and when required.
Cut out conditional buyers
An auction will limit your competition, not all buyers can buy unconditionally. Think about it, when a property is on the market by price, you might be beaten by a conditional buyer with a higher offer and that offer might not even end up going through.
9 times out of 10 when a property is being marketed by Auction the vendor is committed to selling. They have invested in a marketing campaign and have paid for an auctioneer. This cost is normally $2K – $2.5K. They are not just ‘testing the market’.
There is no language barrier
If English is your second language the good thing about auctions is that there is no language barrier. Someone will be writing the numbers down for you and all you need to do is put your hand up. You don’t need to worry as much about misinterpretations.
Only best properties go to auction
You won’t often see a dog of a property go to auction, unless it’s a real do up in a good area. Auctions only work for sellers if there is going to be good demand. If there is a lot of people at the auction, you can rest assured that people want your property so when you go to sell it, the same thing should happen. This can give you piece of mind.
Auctions are the most transparent way of purchasing. You can see your competition, you know what they have gone up to and you don’t have to worry about being bluffed or tricked into paying more.
You might just a bargain
Auctions are only a snapshot of the market at that particular point in time, in that particular location. Often with Auction properties we have a large amount of buyers that tell us they are coming in on the day to bid and then they don’t show. If you are one of the ones to come along, you might just get a bargain!