How to navigate an on-site auction now that restrictions have eased
There was excitement in the property market last week as the easing of restrictions allowed a return to on-site auctions.
Agents in NSW, Victoria and Queensland were quick to switch online auction campaigns to on-site auctions while retaining the ability for buyers to bid remotely.
Ray White Erskineville/Surry Hills/Alexandria director Ercan Ersan sold a double-fronted home in St Marys Street, Camperdown for $1.85 million, $250,000 above the reserve price, a top result he believes was bolstered by the on-site auction.
“I think it sold for more than it would have if we’d auctioned online,” says Ersan. “Auctioning on site versus online can add 5 per cent onto the final price, if not more. For the buyers, it becomes real and tangible, they can see what they’re bidding on, so there’s more emotion.”
While the NSW government has not imposed an attendance limit for on-site auctions, agents must maintain physical distancing of greater than 1.5 metres between people, use outdoor venues wherever possible and adhere to the four-square-metre rule for indoor auction venues.
At Ray White’s Camperdown auction, only registered bidders – 15 in total – were allowed inside the house, and the auction itself was held outside, with traffic cones used to mark appropriate distancing between groups.
While onlookers are not encouraged, Ersan estimates up to 60 neighbours gathered on the street outside the property and appeared to be observing distancing rules.
In Brisbane, more than 50 people watched the on-site auction of 74 Canopus Street, Coorparoo unfold, but they did so online rather than in person.
The Queensland government is now allowing a maximum of 10 people at an on-site auction, plus a maximum of three people to conduct the auction, so McGrath Bulimba agent Ben Cannon opted to live-stream the event.
“I had some friends who found themselves on a Saturday watching an auction somewhere just out of interest,” he said. “It can be fun! It allows people to really engage with real estate.”
Cannon says one of the advantages of using an online platform is the ability for bidders to register ahead of the auction.
“We already had several groups registered online so we only had one party to register on-site on the day. We ended up with six registered parties, five of those turned up on site, and one participated online and ended up being our underbidder.”
Cannon stationed an agent at the front boundary to collect everyone’s details and had witches hats set out in the driveway to keep bidders two metres apart.
“Everyone was really respectful and happy to follow the guidelines we set for them,” says Cannon, who admits to being anxious about proceedings the night before the auction. “If last Saturday is an indication of what to expect going forward, then that’s really excellent.”
Cannon said a number of neighbours turned out to watch proceedings, gathering on the footpath. “It’s a public space, so we can’t stop that, but most groups stood with good distance to others and the auctioneer was very loud bellowing out the numbers.”
Family members or “support crew” will only be allowed to attend if numbers remain at 10 or below.
Restrictions are similar in Victoria, with 10 people permitted to gather for an auction at any one time, in addition to the people required to facilitate the auction.
Victorian agents have been directed to collect the name and phone number of each attendee and to also request attendees to download the COVIDSafe app, although this is not a condition of entry.
When Belle Property Balwyn agent Toby Parker switched the auction of an apartment on High Street Road, Ashwood from online to on-site last Saturday, he contacted everyone who had inspected the property and told them in-person attendance at the auction would be on a “first-in, best-dressed” basis.
“We also offered people the ability to bid online so we ended up with five people on site and four people online,” he said. “The auction took longer than a normal street auction would take … but it went very smoothly.”
The successful buyer was one of the online bidders and the vendor also tuned in online, so the property was exchanged digitally with the deposit made by bank transfer.
Parker asked the registered bidders not to bring additional people, however one gentleman was ultimately permitted to attend with his wife as “we hadn’t tipped over the 10-people limit”.
The auction was held in the property’s large enclosed courtyard with five agency staff to run proceedings.
While Parker believes having the flexibility to bid online or live-stream auction proceedings is beneficial for both buyers and sellers, he says it’s hard to replicate the energy of an on-site auction event.
“Nothing beats the street theatre of people being at the property and seeing who’s bidding and the cut and thrust of it.”
Belle Property Head Office head of academy Adam Joske agrees, noting there’s “nothing like an in-house, on-site auction with all the associated emotion and adrenalin”, but he emphasised agents needed to give serious thought to complying with social distancing.
Last week Joske sent out a message to his team reminding them of the density requirements (one person per four square metres) and suggesting they speak closely with buyers to work out who will attend an auction so there are no rule breaches on the day.
“If you’ve got 12 bidders it’s a matter of co-ordinating how that would work, maybe with some in attendance and some online,” says Joske. He has also encouraged agents to register all bidders even though it’s not required by law in Victoria.
Posting an agent at the door to act like a bouncer would stop people from “just wandering in” and if too many people did congregate outside the property, Joske said there was every chance police might turn up to disperse the crowd.
Joske also says both buyers and sellers should listen to agent advice on COVID-19 restrictions.
“These are uncertain times and most agents are being extremely well-trained,” he says. “So be guided by your agent because things are changing all the time and the public doesn’t always know what’s going on.”
We recommend
We thought you might like
States
Capital Cities
Capital Cities - Rentals
Popular Areas
Allhomes
More
