Online Auction

Discussion in 'The Buying & Selling Process' started by vanstrizz, 3rd Apr, 2021.

Join Australia's most dynamic and respected property investment community
  1. vanstrizz

    vanstrizz Member

    Joined:
    27th Mar, 2021
    Posts:
    7
    Location:
    Melbourne
    Hi everyone! My first post here after a few months of lurking/learning.

    My partner and I are first home buyers in Melbourne. We've attended a few auctions where the property has sold way over the top of the range (eg. top of range $640,000 sold for $769,000 at auction). Our budget is $750,000.

    A place that we really like has come up and is going to be auctioned online next week. The guide has already been revised up due to the huge amount of interest (and possibly people commenting that it was underquoted originally).
    It was listed at $620,000 - $680,000 and is now listed at $680,000 - $700,000.
    The owner has died so it is being sold by an executor and therefor has to go to auction - so no scope to make an offer before auction.

    We are getting a bit cynical (realistic?) and thinking it will likely go for around $780,000.

    Has anyone had experiences with online auctions? Do you think it changes the behaviour of buyers? Is it any less likely that it will surge well above the top of the range in an online setting?

    I have registered to bid and will have everything ready to go but still curious what everyone thinks!
     
  2. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,738
    Location:
    Sydney
    I think you might have less chance cause buyers from anywhere in the world could jump on and bid fairly easily. Even us Sydneysiders. But, good luck to you. You never know :)
     
  3. vanstrizz

    vanstrizz Member

    Joined:
    27th Mar, 2021
    Posts:
    7
    Location:
    Melbourne

    Ahhhh....Yes that's true. I didn't even think of that *facepalm*
     
  4. vanstrizz

    vanstrizz Member

    Joined:
    27th Mar, 2021
    Posts:
    7
    Location:
    Melbourne
    Auction was tonight. Bids were up over $920,000 when I left. Not sure what it sold for in the end. It was too depressing to keep watching :confused:
     
    Stoffo likes this.
  5. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,933
    Location:
    Brisbane
    It would be good to have a link to the auction (if possible).
     
  6. vanstrizz

    vanstrizz Member

    Joined:
    27th Mar, 2021
    Posts:
    7
    Location:
    Melbourne
  7. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,933
    Location:
    Brisbane
    Thanks. Will be good to see what it went for, once the information is online.
     
  8. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,576
    Location:
    Melbourne
    $956,000 according to auction results (Rea).
     
  9. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    Hi Vanstrizz,

    Sorry to hear the online auction didn’t go your way. Online auctions have obviously grown in their application since the start of Covid - however from experience they are still pretty awkward! You can rest assured that provided they are going through a reputable and legitimate platform like Auction Now, that all the bidders have been verified and registered. Obviously you’re in Victoria so registration rules are different however to answer your question I don’t find they really deter buyers from bidding confidently, especially in the current market.

    I guess if you’re going to compete for another property via an online auction, I’d offer the same advice as a live one - set your limit and stick to it, but be prepared to bid aggressively to show your competition you mean business. You can’t use body language or voice to do it, so you need to do it via your keyboard. Probably a good idea to bid quickly anyways as you’d hate a technical glitch or Wi-Fi dropout to be the cause of you missing out!!

    All the best :)
    - Paul
     
  10. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    1,769
    Location:
    Brisbane
    I’ve participated in a couple of online “auctions” in the last few weeks, although in reality they haven’t been as binding as a real auction, just having everyone’s offer visible and then run up to a closing date.

    They were run over the course of a week, and were surprisingly addictive. You got an email every time a new offer was made. It was quite frustrating because several times I had the lead for a day or two thinking it was all done, and then suddenly “buyer f” and “buyer g” etc would join in and push it along.
     
  11. gach2

    gach2 Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    1,895
    Location:
    sydney
    You do realise its really easy to bid at a traditional auction without being there. Just fill out some forms and provide identity and phone bids. Its same process with online auctions for locals and non locals. Traditional auctions just make it easier for locals as you rock up with ID and your done.
     
  12. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    Spot on!
    - Paul
     
  13. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    Interesting - but yes very different to a standard auction in NSW with unconditional transactions on the day of auction either on the floor or up until 11:59pm on the day.

    That’s more like eBay or buying a case of shiraz on GraysOnline - bizarre! o_O

    - Paul
     
  14. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    1,769
    Location:
    Brisbane
    Yes I hadn’t seen it before but I did two in one week in northern NSW, with different listing agents, so I assumed this was now a somewhat common thing.
     
    MyPropertyPro likes this.

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia