I’ve battled with this question for many years. I’ve been brought up in this industry working with strong auction companies, so I’ve seen my fair share. Though I’ve always asked the question to myself after each auction on whether the buyer had more in them? It doesn’t matter if a property has sold well over reserve or met the sellers price, our job is simple, get the best price for our owners.
My take on an auction is that it will provide a seller with the next best bid. That means the auction will cease upon the competition running out of money. But what about the actual buyer? How much more do they have to spend? How far would they be willing to take it? All these questions can arise after an auction and the only person who knows how much money you’ve left on the table is the buyer.
Expressions of interest are always a good campaign. It pushes a buyer to compete with themselves and put their best foot forward when buying property. So, instead of a discrepancy of say one thousand dollars between the winning bid and the under bidder at an auction, you may have a difference of thirty or one hundred and thirty thousand dollars, when final offers are called in an expression.
But in saying all that, I love an auction, I love the fast pace and the high emotion. It gets people thinking fast and moving fast and brings everything to a head a lot quicker than any other sales process. My belief is to take a property to auction with the option to sell prior through an expression of interest type sale. This means, if enough buyers have flagged interest to purchase prior, then allow all buyers to submit their best and final offer within twenty-four to forty-eight hours. This way, you cover all angles and open yourself to getting the best price.
Either way, my battles are usually irrelevant. I only think about it after an auction has sold and if a property has sold, usually the seller is happy with the outcome and not thinking about whether there’s more. If my sellers are happy, then I’m always happy. We work hard to ensure they have a big grin on their face, big enough to tell their friends and family that the experience and result was exceptional. That’s what keeps us going from one campaign to another.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.