AUCTION TALES
Auction Tales: Tales of Two Auctions in Croydon Victoria
Auction Tales, Property One
Great location, a quiet street not yet filled with the townhouses springing up everywhere in Croydon.832 m2 on a corner block, price guide $870,000 – $940,000
The house was sizable, unrenovated, and was clearly a much loved family home. During the auction campaign the agents reduced the price because of a lack of interest. Initially on the market $900,000 – $990,000.
Auction day rolled around and the crowd was tiny. I was the first there at 15 minutes prior to the auction. I wasn’t buying for anyone, I was researching agents for a home of a client. I sat in the car (as I often do), watching for early birds, and interest. Slowly the neighbours approached, few inspected the home because they feel awkward, often they know the sellers, they know the story of the home and the lives lived there.
The Auction was underway with a Vendor Bid of $870,000, and there were two bidders. A price range of $870-940 , highest bid was $910,000 , and the home was not yet on the market. The auctioneer will often take a pause if the auction isn’t going anywhere. This gives buyers a chance to regroup, and it gives the sellers a moment or two to consider their options. Do they sell at a lower price than expected, do they take the chance that a lower reserve will spice up interest levels?
Back on track, the auctioneer has spoken with the Sellers, at $910,000 the Sellers will be negotiating with the highest bidder, and the property will be passed in. No further bids, the home passed in. It later sold for $940,00, the top of the revised price range.
Auction Tales Property Two
I love this location, close to Ainsley Park, although parking is a pain on a Saturday.
There are building restrictions in this area regarding dual occupancy. Set on 997m2, price guide revised up during the campaign from $900,000 to $990,000 to $950,000 to $1,045,000.
Manicured garden, polished home, renovated recently, all seemed promising although the floorplan was strange.
Traveling from the first auction, and arriving only 5 minutes prior to GO time (again, not interested in buying the home, researching agents), the crowd was large, parking was difficult, the street was full.
Calling for opening bids, the auctioneer was solid, Bidder 1 raised their hand at $950,000, quickly followed by bidders 2 – 6. Declared on the market at $1,070,000 (yes, over the top of the range)
The bids wound down to $5,000, then 1,000 each before selling to Bidder 6 for $1.266, a whopping $196,000 over the top quote price. An amazing outcome for the Sellers and for the Agency (also for home values in the street).
Both 4 bedroom weatherboards, both in locations that I liked.
Both homes began their auction campaigns on October 1 at the same price range of $900,000 to $990,000.
Auction Tales Lessons
Ensure all agents on site know the basics about the house particularly if they have been assisting the main agent through the Opens.
Ensure all agents communicate with those at the Open and the Auction. Please don’t just stand there like a shag on a rock. I am increasingly seeing this with agents. Is it a new training method? I will have to investigate.
Ensure as much as possible that all beneficiaries understand the auction process, and are on the same page at the beginning of the auction. That various scenarios are run, and answers decided.
The house may not be declared on the market when bids are flying thick and fast, the auctioneer needs to keep up with the bids, not interrupt the flow, and get the words out when they can.
Unlike what happened in THE BLOCK auctions (I don’t watch these, too unrealistic, fake), a vendor bid cannot be made once the Reserve price has been reached.
If you would like to chat Auction strategies then please give me a call. It’s one of my favourite subjects.
Find out more about auctions through Consumer Affairs Victoria
