In markets dominated by private treaty sales, agents who win at auctions are those who go the extra mile to sharpen their campaign strategies and garner buyer interest. Here’s how to do it.
As sentiment changes the dynamics of the market, agents need to work harder to ensure their auction campaigns are effective and attract enough buyer interest from the get-go.
McGrath Ascot director Keith Mahon said while private treaty was usually the preferred method of sale in Brisbane, days on market had been pushing 90 days in some cases, making auctions more effective in the current conditions.
However, he said agents needed to ensure their auction campaigns were well-executed to ensure the best chance of success.
Under the current market, Mahon said accurate pricing, targeted marketing, and honest conversations with sellers were key to a successful auction campaign.
According to Mahon, agents needed to help their vendors set realistic pricing to ensure that it didn’t miss the mark with buyers in either direction.
“Give the vendors the correct estimate so that they’re not running a campaign where they’re 10, 20 per cent off the market because then you’re not going to sell it under the hammer,” he told REB.
He said a lower price may attract buyers who didn’t have the budget for it, whereas advertising a higher-than-expected figure might alienate a lot of buyers who may have been interested.
Mahon said some agents made the mistake of being too fearful to give their vendors the honest market feedback, warning that this could jeopardise the outcome of the sale.
“If they have a reserve that’s been set too high because they haven’t been informed, and they have a bidder on the day that’s at the correct level and they don’t take the offer, they may have to sell for less post-auction.”
When it came to marketing, Mahon advised agents to advertise the property on as many online portals as possible and broaden its reach by pushing it to interstate markets if applicable.
“In Queensland, we are seeing a lot of interstate migration, so make sure you’re reaching those buyers in those southern states so they are aware, especially if their access to the state is limited.”
Additionally, to attract the right audience, he said agents should keep an up-to-date record of notable buyers from previous campaigns and reach out to them about new opportunities.
“If you’ve got a property coming that’s similarly priced to what they wanted, then make sure that buyer has plenty of knowledge beforehand and give them plenty of opportunity to see it.”
He also said agents should seek to create a sense of competition around the property through their interactions with buyers, but also by ensuring there would be enough bidders on auction day.
Mahon said generating enough interest in the first week of the auction campaign was pivotal, as buyers could have sufficient time to prepare themselves to bid on auction day.
“If a buyer sees the property a bit late in the campaign and they’re still trying to get their financing in order, it can be a timing issue where they’re not in a position to bid on the day.”
Over the course of the four-week campaign, Mahon also said agents should actively vet interested buyers to determine who was a genuine purchaser, and help them get into a position to bid.
He said the last week of the campaign was particularly important to this step, requiring agents to follow up with all prospective buyers and check that they had done the required due diligence.
“Sometimes that can be where the buyer chooses to do the building and pest inspection, so you can give them plenty of time to get that done, and they can scratch that off.”
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