Why it’s critical to bid when you are the only bidder at a Canberra Auction
It’s a cold Saturday Canberra morning in August there is a handful of people lingering around a well dressed young guy who’s about to start, what some might call an anachronistic ritual called, an auction.
In a time when nearly every significant transaction is digital, how is that something so antiqued can still exist?
Welcome to the world of real estate auctions in Canberra.
In Canberra, the most sought after real estate is sold by public auction. In public and predominately onsite. It’s estimated that 80% of the suburban price records have been achieved at auction.
When it comes to clever and contemporary citizenry, Canberra’s populace is at the top of the ladder in Australia. Mostly university educated working in policy and public service roles Canberra’s are smart folk.
But when it comes to auctions, statistics would suggest that they are not so smart. Statistically, the most likley scenario at a Canberra auction is 0-1 bidders.
Agents can publish whatever numbers they like. But after going to 50 auctions over two weeks across all districts and different agencies, the most common result was one or no registered bidders.
The reason that i offer that Canberran’s are not the smartest auction tacticians is that when I talk to buyers as either an auctioneer or bidding strategist when they are presented the situation – where they are the only bidder – most freeze and don’t go for the kill.
Here’s the game plan: if you are the only bidder. Bid!
What’s the price of talking? Nothing!
What’s the price of starting at 80% of your wish price? Nothing.
What’s the cost of letting the home pass in, and having a buyer who could not register to bid, then enter into negotiations on your home? Painful.
If you are the only bidder – bid – get a number out there and then start talking to the agent, or the auctioneer.
Control the speed and increments of the bids. Keep it public and delayed. That’s fine. Keep it live and keep exclusive. Yes, exclusive. Here is the thing. While you are the only bidder and it’s live you have the only and exclusive rights to bid, buy and the own the home.
You can ask any seasoned agent or auctioneer the most bemusing statement that a buyer makes during an auction and it’s “We will wait and see what happens”
Here is what will happen. The home will sell to another buyer for the money, or less money than you would have paid. If you let it pass in then thee is a 95% chance that it will sell for more than it gets passed in for and within 2 weeks.
If you register and don’t it’s also likely that the agent will put you in the “too hard basket” and focus on willing and conditional buyers post auction.
If you are the only bidder. Take control and get it below value. If your extra smart you might consider using an expert for 0.05% of the value of the property.
Whatever you do keep the auction exclusive while you're the only bidder.
“Pass on what you have learned.”
© 2019, Auction Advantage
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