Insight

03.08.21  Selling Advice

 

Why Use An Auctioneer?

There’s no doubt in our mind that a good auctioneer adds value to a property sale.

Auctions are the preferred method for selling property in Sydney’s eastern suburbs real estate market, and for good reason.

Auctions bring a level of theatricality and spectacle to buying and selling property. People turn up - or tune in - to auctions because they have all the ingredients of a good drama, with the auctioneer being the star of the show. And, thanks to shows like The Block, some auctioneers really have become celebrities in their own right.

The benefits of auction

We’ve written about the benefits of auctions many times before.

Auctions are popular with buyers because they are open, transparent, and public. And they’re popular with sellers because they create the competitive tension needed to achieve the best price.

The property market in Sydney’s eastern suburbs lends itself to selling by auction because there is often strong buyer competition - the main ingredient required for this sales method to work.

That said, auctions aren’t the only way to sell a property and they’re certainly not the only method of sale we use, even in a market like this one.

In any given year we generally sell 40-50% of properties off-market. We also sell properties via private treaty or through expressions of interest. But for those properties that have a public campaign, most end up being scheduled for auction - even if they often sell in advance of auction day.

A good auction requires teamwork and groundwork

A successful auction is never just about auction day itself. It’s also about the entire campaign leading up to the auction.

There’s a lot of work that goes into leaving no stone unturned in the search for the right bidders and the right buyers. Substantial effort goes into the marketing and advertising of any property that we put up for auction. That can include significant work on styling and presentation. We’ll often engage a professional stylist and a specialist photographer to get people through the door and showcase the property in its best possible light.

Then we work hard throughout the campaign of open homes, making phone calls and following up on conversations. The agent needs to do their job properly in the lead up to auction day to encourage people to come out and bid, and bid strongly. Because, while auctioneers can be the difference between a good price and a great one, they aren’t miracle workers.

What does a good auctioneer look like?

Any auctioneer can sell a property under auction conditions, but a good auctioneer will really make a big difference. They’ll work hard to increase competition, doing what they can to drive up the price and achieve the best auction result.

The best auctioneers have finely honed skills and intuition when it comes to reading the room. They can quickly assess how the auction is going and read the body language of auction participants. They also have a solid understanding of people and human psychology. They know when to push and when to hold back, as well as how to change the mood when an auction isn’t going well.

The best auctioneers can also make a difference by building fear of missing out, and encouraging additional bids. But they won’t be deceptive, unfair, aggressive, or too pushy, as these techniques tend to backfire. They’ll control the pace of the auction, and use a bit of theatre - like the hammer, to encourage bids.

In the words of Damian Cooley, an auctioneer we use regularly, the job of the auctioneer is also about making the property more saleable and appealing post-auction if it doesn’t sell under the hammer.

What about online auctions?

With COVID-19 changing the way we live and the local property market, online auctions have become a far more popular way of selling property. We have had a lot of success using online auctions during Sydney’s lockdown, as well as a way of engaging buyers from other regions or overseas.

They generally come in two forms. The first is simply a live-streamed auction where the auctioneer takes centre stage and bidders watch on, placing their bids remotely instead of raising a paddle in the auction room.

The second is the purely online auction where the bidding takes place over a long timeframe - sometimes weeks or months. These auctions tend to work more like eBay, where people can place bids and the seller accepts or rejects them.

Why should sellers worry about who their auctioneer is?

If you’re selling a property and the agent suggests an auction, it pays to ask who the auctioneer will be. A good auctioneer can make a real difference to the final sale price, so it’s important you’re confident in their abilities, and that they come highly recommended.

If you’re thinking about buying or selling in Sydney’s eastern suburbs contact my team today.

Download our 2018/2019
Eastern Suburbs Market Report

Next Insight

What’s Behind Rising Prices?