Competition – The Key To Auction Success

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You will have heard many auctioneers talk about ‘competitive bidding’ as this is essentially the main reason that auction properties sell for a premium price in comparison to private treaty sales. The success of an auction at the end of the day comes down to well-managed competition between interested parties. Australian studies have shown that the factors impacting an auction outcome include starting bid values, bidding increments and the number of bidders. Obviously the more bidders the better, as you have more buyers competing for the property, however more than 4 bidders proves to be the ideal number to generate the best result. Consumer behaviour drives the auction process, the desire or primal urge to outplay and ultimately win are the emotions that drive the price upwards. The role of an agent in the auction process is therefore to showcase the property in the best light, engage with prospective buyers and create a competitive vibe or atmosphere on auction day. Auctions to some degree are about value for money and good buying in the current market, however the premium prices come down to competition, human nature, the will to win. Understanding this concept can help develop a stronger campaign and strategy on how to approach and handle the auction process.

If you are interested in training in how to pitch, develop auction strategies or improving how you manage an auction campaign, then contact me now to book your next training session!    

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER