5 Reasons Why You Could Bag A Bargain At Auction.

As a buyer, we get it, you want to ensure you are securing a great deal on the property you decide to buy.
You want to avoid overpaying and ensure it has some good opportunity for growth.

So, where are the current buying opportunities within the Brisbane market?

Auctions, Auctions, Auctions.

Our team have witnessed several properties over the past few weeks that have gone under the hammer at a bargain price.

While it is known that the market is dropping, slightly, we are finding your best opportunities are within the Auction space.

Here are our 5 reasons why buying at Auction may be your opportunity to secure a bargain.

1. 1. Auctions are Transparent.Unlike the more traditional sale methods of negotiations where you have no idea who is making an offer nor how much they are offering, Auctions lay it all out in the open.

      You know exactly who is bidding and you can typically gauge how much they may have to spend. It is a very different environment to placing an offer behind a computer to placing a bid looking into the eyes of your competitor…

   2. Decrease in Fomo (Fear of Missing Out)With interest rates on the rise, we have noticed a strong decrease in FOMO, which, as a result, is easing the spike in property prices.

      So, what this means under Auction conditions is the average buyer is becoming more hesitant and conservative with their bids. On top, if these buyers are not pre-approved, they are in some cases flying blind in how much they can actually spend.

      Being pre-approved under Auction conditions provides you with clarity to make confident bids. Being a confident bidder at Auction is key to walking away with a great result.

      Trust us, you can spot the hesitation a mile away.

   3. Sellers Are Motivated to SellWhen it comes to the end of the year, the attitude of a seller adjusts. With Christmas fast approaching, the sentiment with many is that they want their property sold ‘before Christmas’, which means, they are needing to sell NOW.

      So when the average minimum settlement period is 30 Days with a traditional sale, many sellers are opting for an Auction Sale Method.We find many sellers do not wish to carry their property over into the new year which is why we find there are more auctions, because once that hammer falls, the property is SOLD.

      So with sellers not wanting to wait it out, as a buyer, your chances for a seller to be lenient or drop their asking price is greater.

1. Auction Terms

   Auctions have clear terms that are set and must be adhered to. Unlike a traditional sale, once that hammer falls, the property is yours. There is no cooling off periods, no time for building inspections and no time to re-negotiate a contract.

   Because of the ‘final’ nature of Auction Terms, we find this can be a turn off for buyers, resulting in them avoiding auctions all together.

   So with less buyers attending auctions, you may just find you have less competition.

2. Clearance ratesAs of the 23rd Nov, realestate.com.au has the QLD auction clearance rate sitting at a low of 36%.This low clearance rate indicates a great buying opportunity for buyers who have set themselves up as cash unconditional.

Don’t let an Auction deter you from securing your perfect home. If you are nervous or unsure about bidding at auction, we are here to help and support you through the process.