“One of the biggest advantages to online auctions is that you don’t have any pressure or influence from the agents in your ear,” she said.
“Being in the comfort of your own home you can minimise that feeling of being in a pressure-cooker environment. This should help you make less rash decisions and allows you to be a little calmer through the process, giving FOMO a smaller chance to take hold.”
Buyers agent Michelle May has shared her top tips for winning an online auction. Picture: SuppliedSource:Supplied
Ms May said that checking out a property without hundreds of other buyers is certainly a win with open houses cancelled, but trying to get a scheduled viewing makes it harder for prospective buyers to even to get their foot in the door.
“Changes to these inspections now also means that only one person can view the property at a time. Even couples will have to split up. This makes it hard to ensure you’re on the same page, and some critical issues can be missed,” she said.
“If you’re looking to buy with someone else, make sure you talk through everything you’re looking for in the property first.”
When it comes to the online auction, Ms May said everything from technical difficulties, pre-registration issues, log-in challenges and even screen freezes mid-auction can pop up.
“Then you have to think about the psychological side behind auctions. At an in-person auction, you can see who you’re bidding against and use tried and trusted strategies to assert yourself and ultimately secure the property,” she said.
“Online, things are very different as you may not see who you’re up against, and it’s harder to stand out as a formidable opponent. You often don’t even know how many people are registered.”
She advised building a strong relationship with the vendor agent before auction.
“Being in contact with them during the auction helps navigate technical difficulties and ensures your bids are always heard,” she added.
Auctions and new listings have dropped since Sydney went into lockdown. Picture: Gaye Gerard/NCA NewsWireSource:News Corp Australia
Lockdown has also seen an impact on the number of new places advertised last month in Sydney, which fell by 13.3 per cent, according to data from realestate.com.au.
Overall, new listings fell in five out of the eight capital cities through June, with Melbourne down 11.1 per cent.
The fall in listings could be partially attributed to lockdowns, but a lack of listings was also contributing to property shortages, said executive manager of economic research at REA Cameron Kusher.
With the average auction campaign last four weeks, this could have an even bigger impact on listings with vendors spooked by selling in the lockdown climate.
But if you are facing an online auction, there’s plenty of preparation you can do to ensure your best chance of winning, according to Ms May.
Top tips for an online auction
1. Make sure you have the phone number of the agent saved in your phone so that if you have technical issues they are only a text message away.
2. Have a pen and paper handy so that you can write down the bids just in case they don’t pop up on your screen. Writing down the bids will also help you to not get caught up in the emotion and stress of the auction.
3. Be in a quiet space without any distractions.
4. Lock in your maximum bid prior to the auction, as depending on the program used, your competition may still be able to see your face and hear your conversations.
5. Because it is online, you will be asked to transfer your deposit electronically, so if you’re asked to do a direct debit you have to ensure you have lifted your daily transfer limit with your bank in advance