Vendors huddled out of sight in their lounge room, straining to hear what’s going on in the front yard is what most Australians think of when it comes to selling at auction.
But with COVID-19 restrictions accelerating the uptake and popularity of online auctions, there’s not just one sort of auction anymore. Online auctions are here to stay.
It’s wise then, for vendors looking to sell their property the new age way to understand the process and how to maximise their sale price.
Here are some top tips that will help you prepare for an online auction.
1. Learn about the process
As always in property, knowledge is power, so understanding how the online auction process works is the first step to success.
David Scholes, the founder of virtual auction platform SoldOnline, said knowing how they differ to traditional onsite auctions can help alleviate the concerns some vendors have.
“It’s important you have an idea of how it works and what is needed from you as the vendor,” he said.
The best guide to this is often a “trustworthy, competent, local real estate agent” who can adapt to market conditions and understand how to market a property for an online auction campaign, Mr Scholes said.
2. Make the property shine
While the actual auction day process might be slightly different when it’s virtual, the way a vendor prepares their property should follow the tried and true traditional formula.
Ensure the home is presented in its best possible light during inspections – whether they’re in-person or via the worldwide web.
“This can include decluttering and some minor restoration works, including paint touch-ups and garden landscaping. You want your home to present well for videos and photos for marketing too,” Mr Scholes said. So get tidying!
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3. Get paperwork in order
A solicitor or conveyancer should prepare a straightforward auction contract and understand that potential purchasers may require slight amendments to the contract, Ms Scholes said.
Amendments might include a reduced deposit and longer settlement timeframes. It’s also important for the vendor to understand how a deposit will be handled with an online auction, given the successful bidder isn’t physically present on auction day.
4. Have an auction day plan
Just like when there’s an auctioneer out the front taking bids, vendors don’t have a prescribed role on the day of an online auction, but it’s wise to make a plan as to what you’ll do.
If it’s allowed, owners may choose to attend the agent’s office to watch the auction, or if not, they can watch along online with a special log-in.
“The owners don’t play a role, but it is important to communicate and discuss the game plan with the agent, which includes being updated with information on buyers and when to drop the increments during the auction,” Mr Scholes said.
5. Trust the auction process
When it’s all said and done, vendors need to trust the process, Mr Scholes said.
“If you and your agent have undertaken a comprehensive advertising campaign and marketed without a price, there is no reason to suggest there will not be multiple bidders ensuring a positive result,” he said.
This article was originally published on
19 Aug 2020 at 4:59pm
but has been regularly updated to keep the information current.