Why a good auctioneer matters

20/05/2019

It’s easy for an auctioneer to look like a hero when the market is HOT. In such times, they all achieve great results that are almost always over reserve. In fact, in such times, I often tell my clients that could get their kids to auction their homes and still achieve an amazing result!

But a market downturn tests the true mettle of an auctioneer. And I’m sure you will agree, 2018 was most certainly a tough time for the property market!

Many agents struggled to achieve great auction results last year. Luckily for us, we still managed to conduct almost 80 auctions with a clearance rate of around 80%. But just how did we achieve this?

Well, aside from the hard work we put in, we also have some amazing auctioneers supporting us. In this case study, we’d like to demonstrate some of the innovative auction tactics they use to ensure our clients achieve the best possible price for their home.

Note: please read the below article in conjunction with viewing our 5 Roxley Place Live Auction video via our Facebook page.

 

To watch the video:

  1. Visit our Facebook page: https://www.facebook.com/winrealestate.com.au/
  2. Click on our ‘Video’ link
  3. Type in ‘Live Auction 5 Roxley Pl Mulgrave’ in the search bar
  4. Hit play

WIN Real Estate Auctioneer tactics

1. REJECTING LOWER BIDS

WIN auctioneers politely reject low bids, while also using their body language to give the impression there’s another party interested in bidding.

On the off chance this tactic doesn’t work, they then quickly count the auction down, loudly warning the auction will be passed in to the highest bidder.

The case study video example

At $900,000, one bidder tried to bid $930K multiple times but our auctioneer refused to take it. On the bidder’s second attempt, the auctioneer quickly began counting down and warned the property would be passed in if there was no further bidding. This bidder then quickly agreed with a $50,000 bid, putting the price at $950,000.

2. ENCOURAGING LOWER BIDS   

This tactic is the direct opposite of the previous one, but it is used at a different time within the auction.

When a bidder seemingly reaches their limit, our auctioneer offers the opportunity to place a lower bid to continue to stoke the auction fire. But for it to work successfully, the auctioneer must explain what that extra bid actually means for the buyer.

An example: placing a $5000 bid instead of $10,000 means paying back an extra $5 per week on their home loan. This equates to a single cup of coffee per week.

The case study video example

At $1,200,000, one of the primary bidders started to slow down and became hesitant to bid further. Our auctioneer then encouraged a smaller bid of $1,000, explaining what that would mean for them in repayments – just an extra $6 per week!

After five minutes of persuasion, the bidder took the auctioneer’s advice but instead of placing the $1,000 bid, they placed $5,000. This bid forced the eventual winning bidder to bid another $5,000 to take the price to $1,210,000 and the property was SOLD.

3. DRAG OUT THE BIDS

Good auctioneers recognise they will be dealing with different personalities and bidding behaviours on auction day. They know full well that some bidders need a little longer to make an extra bid. Dragging the bids out allows such bidders to build their own momentum and remain active in the auction for much longer.

The case study video example

At $1,190,000, the auctioneer engaged in this tactic. One of the bidders paused to make a phone call to further consult with family or their mortgage broker.

When the other bidder became visibly frustrated, the auctioneer calmed them down by stating they understood their frustration, but if he was selling their property, he’d do the exact same thing to give them the best chance of the best price.

Dragging out the bids resulted in another $5,000 bid which took the price to $1,195,000. There were then further two bids at $5,000 each, with the property selling for $1,210,000.

So those are just a few of the interesting tactics our auctioneers use to help us get amazing results and auction clearance rates, even in a soft property market. If you’re looking to sell, we’d love to speak to you about how you can benefit from our auction process and world-class auctioneers. They’ll not only get your property SOLD, but ensure it sells above reserve too!



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