As clearance rates drop and buyers stand back from the market, young auctioneers have an opportunity to prove themselves as trustworthy experts and further their careers.
As buyer hesitancy persists, leading to weeks of lower clearance rates, novice auctioneers have a chance to step up and prove themselves in more difficult conditions.
The latest data showed the preliminary combined capital clearance rate for the week ending 26 July was just 52.4 per cent, a slight increase on the week before but still hanging in the low 50s.
According to experienced auctioneers nationwide, younger professionals can handle the current market by advancing their negotiation skills, preparing for every scenario, and sustaining constant energy.
Here is their advice:
Sydney
Menck White auctioneer, Clarence White, said in a quieter market, younger auctioneers needed to strike a balance between being patient with buyers and persuading them to take action to bid.
“I think there’s a bit of skill and experience in knowing how to wait that out and what to say to buyers to just move things along,” White told REB.
Sydney has recently seen sharp declines in its preliminary clearance rate, but last week recorded 56.1 per cent, bouncing back from 47.4 per cent recorded the previous week.
With conditions more subdued and buyers restrained by affordability pressures, White said auctioneers needed to know how to close the gap between vendor and buyer expectations.
“It’s about reading the situation well and understanding what needs to be done to bring a buyer’s price up a little bit to get the property sold and meet the vendor’s expectations for them to say yes.”
“In difficult markets, good sales agents come to the top, and it’s the same for auctioneers because in this market, you want an auctioneer who can help you negotiate with the buyers to get a deal done.”
For newer auctioneers, White said there was value in mentorship and real-life experience to allow them to learn to manage various situations.
“In our team, we’re working with them in training, going through scenarios that involve negotiation, going through, what do you do when you’re calling an auction and nobody’s bidding? What are you saying? How are you handling that?”
Brisbane
Apollo Auctions Queensland auctioneer, Marcus Frater, said many novices were facing a changed auction market where generally only one or no registered bidders showed up.
However, he said much of the heavy lifting came before the auction itself, which included working with the sales agent and meeting with the vendor to discuss reserve prices.
“Then, at the open home prior to the auction, speaking to everyone there and where possible, getting them registered to bid with (for example, a longer settlement),” Frater said.
In early July, Brisbane recorded a preliminary clearance rate of 23.8 per cent, its lowest result since early May 2020.
Frater advised younger professionals to never leave an auction outcome to chance, and to plan so that they were prepared for every possible scenario.
“The mentality I take into every auction is that I am working with one bidder. Even if there are multiple bidders, only one buyer can purchase the property at auction, so if that is your starting point, nothing that happens on the day pulls you off your plan.”
Frater also said auctioneering was a performance, and it was up to the professional to elicit energy in participants by engaging with them, even when turnout was low.
“A big crowd makes it easy to feed off the energy; standing in front of five people is a different feeling.”
“Go into every auction as though there is a full crowd there and create the energy yourself. It makes the slow ones far easier to handle.”
Adelaide
Ouwens Casserly Adelaide auctioneer, David Richardson, said many novice auctioneers struggled to become aligned with vendors on strategy and pricing.
While the city’s preliminary clearance rate hasn’t seen as much of a drop as other jurisdictions, last week it dipped to 52.6 per cent, the third lowest result so far this year.
“Every agent wants to be the vendor’s friend where the auctioneer is often left to be ‘bad cop’ when it comes to aligning the vendor to sell,” Richardson said.
Richardson said that this task can be made easier when the auctioneer has contact and face-to-face interactions with vendors ahead of the auction.
When buyer interest seems low, Richardson advised young auctioneers to be patient and avoid berating the bidders.
“Most definitely don’t be trigger-happy with vendor bids. Make eye contact and suggest a price, lower your tone and don’t fear long stretches of no bidding.”
“It’s extremely important to have a list of standard dialogue to draw from to provoke bidding.”
Additionally, Richardson said auctioneers should be ready to work with and guide sales agents, as they didn’t always have a strategy for every auction outcome.
“What happens with no bids? What’s your one bidder scenario? What’s your ‘almost there’ scenario? What’s the strategy to get more from a buyer when they’re above reserve?”
“Not all agents are equal and many lack strategy around each possible outcome.”
Perth
Apollo Auctions WA representative, Prash Nayar, said in a softer market, younger auctioneers should remember it was their job to uncover demand, rather than create it.
Last week, Perth held 10 auctions, with only 25 per cent reporting a positive result, although private treaty sales are usually more in favour.
“The role is to provide confidence, transparency and structure so buyers feel comfortable making decisions,” Nayar said.
In times of low biddings, he said junior auctioneers shouldn’t mistake silence for failure, but stay composed and resist the urge to rush the process.
“Some of the best auction results begin with long pauses and cautious buyers. Buyers often need time to process their decisions, particularly when confidence is lower.”
Additionally, he said inexperienced professionals should remember their negotiation skills immediately after the auction were just as valuable as their calling skills.
“Remaining calm, gathering the right information and facilitating constructive discussions between buyers and sellers can often produce an excellent outcome.”
Nayar also noted that in a slower market, younger auctioneers may try to manufacture urgency that simply isn’t there.
“Speaking too quickly, overusing filler phrases or trying to force bids can actually reduce buyer confidence. Buyers respond far better to an auctioneer who appears patient, measured and in control.”
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