Hammer Talk – Onsite Vs In-room auctions
With the Easter break upon us and auction numbers significantly reduced for this upcoming Saturday it is the perfect time to compare the benefits of onsite auctions Vs in-room auctions.
Onsite is the mainstream way of conducting auctions. Each Saturday in Sydney we see 600-1,000 auctions taking place in the front and back yards of homes for sale.
The main benefits for onsite auctions are:
Spectators and street theatre
Auctions have become a weekend spectator sport with everybody wanting to see who is buying and how much for. It’s the audible “oohs” and “aahs” you get as the price rises even beyond their belief. Saturday’s see the most number of neighbours attending the auction and for agents this makes your ultimate listing presentation. It is street theatre at its absolute best.
Buyers physically see the home
It’s coming to the important moments of the auction; the couples are talking to each other deciding whether to have one last push with another $5,000 or walk away. It’s the moment where they take one last look at the home and decide whether they see themselves living there. It’s this emotional attachment to the home that they have mentally moved into that can drive the bidding beyond all expectations.
Let’s look at the benefits of In-room auctions.
With the vast changes in weather we have experienced so far this year, from 40 degree searing heat to near flooding rains, it would be fair to say that the comfort of a 24 degree airconditioned room is far more comfortable for the buyers, sellers and agents alike. This professional environment affords all parties the control over the weather.
Multiple properties multiple bidders
With in-room auctions, sellers have the benefit of multiple buyers in the room bidding on multiple properties. So, if the property you are selling only has one bidder, that buyer has no idea how many people are registered on each auction. This is where some of the major benefits arise. Agents are now able to work the room and implement a strategy to get the best result for the seller even with just the one buyer.
We have also found when selling multiple properties that are very similar and in a similar location, the buyers are interested in a couple of them. With that the buyer will obviously rank their preferences and if they miss out on the favourite we often find them bidding on the next one. This means that we maximise the chances of selling for a great result on the night.
Order of sale
With control of the order of sale we can set the order that will maximise the chances of selling all homes for the best results. It is key to the strategy in getting the best results and there are specific reasons why orders are set in a particular way. Experience and expertise counts here.
Time and diary management
As quality agents continue to get busier, conducting in-room auctions during the week enables them to better manage their diaries for open homes ultimately allowing them to carry more stock and to run them efficiently. Diary structure is far easier as you know the date and time of the auction and can set your open homes throughout the entire Saturday without worrying about how close together they are.
With running in-room auctions you also give yourself more time to negotiate and put the deal together. On a Saturday, for agents that have back to back opens, the time just isn’t there to spend 30-40 minutes negotiating post auction. This continues to give an edge in the ability to get the best result for our sellers.
Location of property
For a property that is on a main road or in an apartment complex where parking can be difficult moving the auction in-room can take this out of the buyer’s mind. It certainly won’t draw to a point how bad parking is or how noisy the road is.
Sell in isolation
We have talked about this before and we continue to harp on about it. Selling in isolation is one of the biggest keys to getting the best results. With the Easter long weekend upon us, auction listings for this weekend have dropped significantly. This is the perfect time to be selling. Auctioning during the week either side of Easter would have enabled that as agents, nothing stops and the market just continues to roll on.
Everybody rushed to the Saturday’s either side of Easter which showed record numbers. With that comes choice for buyers and an abundance of it. The last thing we want when selling is the buyers having to choose between your auction and another at the same time. Remove the choice and make it easier for buyers, sellers and yourself. Now is the time to consider your move before the June long weekend. Do you go with the crowd? Or lead the pack?