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Can online auctions achieve the same financial results?

01 June 2020 Cameron Micallef
online auctions

With online auctions likely to become more prevalent in a post-COVID-19 world, an auctioneer has proven to sell a property faster and for above reserve through an online platform.

A property promoted on Openn Negotiation has gone for $150,000 over reserve after being listed for just 13 days.

Selling agent Michael Tomadakis of Biggin & Scott Inner North was confident the interest levels would be high for the home, located at 25 Milton Crescent, Preston, Victoria.

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“I knew that buyers would be interested from the beginning,” he said. “The fact that this property is located in Preston South appealed to many buyers because many of the homes in this niche area are so tightly held that they just don’t come to market that often.”

The interest level was extraordinary, with the property hitting reserve eight days into the campaign and then selling under the virtual hammer just days later.

“The final online bidding stage was set for 11 June, but after hitting the reserve and consulting with my clients, we both agreed that with five registered bidders, we should bring the action forward,” Mr Tomadakis explained.

When Mr Tomadakis changed the date to Tuesday, 26 May, he got a flurry of last-minute requests to view the property.

He held one last home open the night before which attracted additional buyers — including the eventual winning bidder.

“They had been keeping an eye on the property but hadn’t done anything because they thought it was selling on the 11th of June,” Mr Tomadakis said. “They wanted to wait until the very end to get involved.”

Unlike a traditional auction, buyers can start bidding from day 1 in Openn Negotiation — providing real-time feedback on how the market is pricing the property.

Heading into the final bidding stage and knowing exactly how many buyers were competing was a huge plus, Mr Tomadakis said.

“Sometimes on auction day, we are under the impression that we have three or four highly interested and qualified buyers and then only one rocks up. With the transparency of this new online system, I knew that the eight bidders were interested from the very start,” he said.

On the night of the final bidding stage, Mr Tomadakis had the support of the whole Biggin & Scott Inner North office.

“We were all very excited for our clients that their property was in high demand. Each of us were on the phones during the entire process assisting with the auction in any way we could,” he said.

“The bids came in quickly and it all happened so fast. Three minutes had passed and the property had reached the price $1,080,000.”

Can online auctions achieve the same financial results?
online auction bidding reb
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