If you’re thinking of buying or selling your Marlborough home at auction, and haven’t experienced a property auction before, you probably have a lot of questions you’d like answered. To help you we called in the services of an expert! Daniel Coulson is Bayleys’ National Auction Manager, and the face of residential auctions for the company across Auckland and through many regions of New Zealand, including Marlborough. He has also been recognised as the top auctioneer in Australasia, on two occasions.
Daniel is a great advocate for the property auction process, considering it to be the purest and most transparent form of selling real estate. He says, “Auctions are full of emotion, they are raw and genuine human interactions full of happiness and delight, and sometimes sadness for those who miss out. Every time we auction a property, we have the opportunity to change peoples lives for the better.”
We asked Daniel some burning questions so you don’t have to!
- Q: How does the general property market affect how, why and when an auction sales process is used?
A: There is sometimes a misconception that a property auction is only used in a bouyant market. My view is that in a strong market an auction can be used to achieve a premium price in a competitive environment. Whilst, in a softer market an auction is used to create a deadline, a reason to take action and to achieve an unconditional sale.
- Q: Why do you believe sale by auction is the best way to sell property for the vendor?
A: With an auction campaign, a property is not advertised with a price, so buyers assess the property on its merits, not on the asking price of the vendor. It doesn’t exclude any potential buyer from having an opportunity to compete in an open and transparent environment.
- Q: Why do you believe sale by auction is the best way for a purchaser to buy property?
A: A potential purchaser can eye up their competition. It’s also reassuring to know there is someone else in the market that agrees with you on the property’s value. Because a sale at property auction is unconditional, a potential purchaser also benefits by dealing with a seller who is genuinely there to sell, not just test the market.
- Q: In your experience, what are the biggest reservations that people have about selling by auction?
A: The main concern that sellers have is that their property won’t sell at auction. However, we find that if you ensure the largest audience possible has seen the property and every single buyer in the market has an even and open opportunity to compete for the property, it will find its value. Then, the owner gets to decide whether they are best suited to remain the owner, or if they sell the property for the price the market is prepared to pay. The owners confidential reserve price always ensures the property is not sold for a cent less than the owner is willing to accept.
- Q: In your experience, what are the biggest reservations that people have about buying at auction?
A: Buyers sometimes find bidding at an auction a little bit daunting. Our advice is to attend as many auctions as you can, before the one you intend to bid at. This will get you more comfortable with strategies, terminology and the environment. There is also always the option of bidding by phone.
- Q: What can interested parties do to prepare themselves for bidding at auction?
A: Apart from attending as many auctions as possible, which is a must! Talk to the bank and ensure you are in a position to make an unconditional bid, don’t be afraid to ask the agent for help. You may only do this once or twice in your life, the real estate agent does this every day.
- Q: How do potential purchasers make themselves heard at a property auction?
A: Everyone has a different strategy. Some people want to be as discreet as possible, some want to be big and bold. Rest assured, any good auctioneer will know you’re bidding whether you’re at the front or the back and whether you’re quiet or loud.
- Q: Can you pass on any specific tips about bidding at auction, that can help a purchaser secure a coveted property or section?
A: More often than not, the buyer who starts the bidding, ends up finishing it. It is about establishing yourself as a genuine competitor early on in proceedings and letting your competition see that you’re serious about buying. Aim to give the impression you will not give up (even if you’re very close to your limit).
- Q: What do you believe is the most important thing for the auctioneer to do when facilitating an auction?
A: Transparency is key in any auction environment and our role is about being as inclusive and as fair as we can be to each party. We are of course working on behalf of the seller, but we also have a duty of care to each and every potential purchaser.
If you’d like to list your Marlborough home for sale and would like to discuss property auction further. Contact Bayleys Marlborough today… We’d love to chat!