If you’re thinking about auctioning your home, you’ll want to be sure your agent has plenty of experience with buyer behaviour, and creating urgency on auction day. We recently asked our agent network how they create a bidding war at auction. Here’s best practice from some of the experts:
How agents create a ‘bidding war’
Nic Salter from LJ Hooker, Dickson says, “Auctions are all about getting everyone who wants to buy your property in the same place at the same time. The choice of agent and auctioneer is very important. It’ll determine how the buyers are worked with at the event. But remember, most of the work takes place in the weeks leading up to the auction. The buyers have to be nurtured, prepared, and their appreciation of the property must be enhanced prior to them attending the auction for them to be prepared to fight for it.”
Frank Gardner from Ray White, Runaway Bay Group says, “Auctions can result in a higher price for a property as there is a sense of urgency and completion amongst buyers. Prior to auction, create a vision for the bidders that they could miss out on this great opportunity, as the property must be sold and that the seller wishes to meet the market.”
Jeff Johnson from Raine & Horne, Dee Why and Collaroy says, “You can create a bidding war through a targeted and strategic marketing campaign. Also, by creating an environment of desirability through the open homes. Then, assisting buyers with the buying process so they feel relaxed and confident at the auction and bid confidently.”
Peter Gillman from Shields Gillman Real Estate says, “Buyers get scared if they think they’re the only ones interested in a property. So, we make sure that doesn’t happen. We’ll schedule open inspection times ensuring multiple people are viewing the property at the same time. If there are 20 people at a given time at an open house, even if only one buyer is serious, that one buyer is seeing 19 people as potential competition.”
“The next thing is price expectation. There are different prices that a seller has. They have a ‘wish for’ price. They have an ‘I’m happy’ price. And they have an ‘okay, I’ll sell it’ price. In a balanced or sellers market, we’ll price a property on the lower end of the spectrum. This generates more people competing for the property,” Peter says.
“Now, all of the above doesn’t matter at all unless people like the home. In fact, we want them to fall in love with it so they’ll go that extra mile to get it. We do this with presentation and marketing. We suggest a few extra dollars are spent with professional stylists and photography. What’s okay for you as the owner may not be the best way to present. A professional stylist has an unbiased view on your home. They can also shed light on popular design trends in your local market, so you can make your home irresistible to prospective buyers,” says Peter.
Matthew Bell from First National Pretti Real Estate says, “We advertise our auctions with a realistic price guide and a strong modern marketing campaign. We use these two hand in hand to draw the attention of potential buyers. The more qualified the buyers at the auction, the better the result for the owners!”
In summary, to create a bidding war at auction:
It’s important to discuss these points with your agent before the big day:
- A strategic marketing campaign
- The presentation of your home prior to inspection
- Assisting buyers with the buying process
- Holding open for inspections over private inspections
- Realistic pricing
On auction day, a good agent will have the following covered:
- Appropriate bidding techniques for the sale
- Creating sense of urgency and boosting buyer confidence
So, what’s next?
If you’re looking to auction your home, you can compare real estate agents, including fees, commissions, performance reviews and more. Here, you’ll be able to find the right agent for you, and find someone who’ll create a bidding war at auction!