What's the outlook for virtual real estate auctions in 2021?

Virtual auctions are here to stay for properties that draw interstate or overseas bidders, agents say, after the sudden shift to remote sales in 2020.

But the online selling method is hoped to take a backseat in 2021 with real estate agents opting to return to on-site auctions wherever possible.

Agents say the high energy and fast-paced nature of traditional auctions over the slow and sometimes tech-glitched process of online auctions translates to better sales results for vendors.

Even so, many agents plan to keep using online auctions for the advantages they have over on-site auctions in certain situations. These include a buyer’s ability to join an auction remotely, allowing vendors to cast a wider net over buyers who may be overseas, interstate or those who prefer to bid from the comfort of their home.

These advantages proved to be a winning formula for remote properties, said Alex Pattaro, chief auctioneer at Ray White New South Wales.

“Online auctions are allowing our agents to transact properties easier when they’ve got people who can’t attend auctions, so it makes the transaction a whole lot easier for people who are interstate, on holiday or who have personal commitments, whatever they might be,” he said.

“With our rural and its lifestyle properties, it allows everybody across the entire state and even other parts of the country to get involved. For example, I had an auction in December for a property about 30 mins west of Byron Bay and we had 32 registered bidders from all over the country — central north Queensland, Brisbane, Gold Coast, Sydney and Newcastle.”

Many agencies will offer a hybrid auction system by live-streaming on-site auctions, allowing both buyers at the auction and those online the chance to bid.

This beats the method of a buyer giving instructions over the phone, said Christian Hamilton, chief auctioneer at Harcourts Queensland.

“There wasn’t ultimate transparency because the bidder couldn’t see what was happening, they just had to take the agent’s word for it,” he said.

“Whereas in the online auction space they can see everybody who’s on the call, they can see everything that’s going on, they can see and hear the auctioneer, so it’s really open and transparent.”

Hamilton said online auctions have been so successful in Queensland, they will not only continue in 2021, but be refined in the future.

South-east Queensland properties drew strong interest in 2020 from Melburnians and Sydneysiders who wanted to move to a lifestyle destination and work remotely but could not visit listings in person due to border closures and lockdowns, with technology used to fill the gap.

“We’re going to be looking at some additional features like a live bid tracker on the screen for buyers to be able to see on the screen and I might explore the opportunity for breakout rooms in Zoom and what that might look like so we can negotiate with buyers and sellers privately, which we were previously doing on the phone while we paused,” he said.

Hopes are high that in-person auctions can be in widespread use this year as the health situation improves.

With the easing of covid restrictions, particularly in Melbourne, agents returned to live auctions as soon as possible and for some, it was a relief.

“The first couple of Zoom auctions we did the buyers blanked out their screens, as they can easily do, so I was literally doing auctions just with myself on screen,” recalls Melbourne agent and Nelson Alexander auctioneer Jayson Watts.

“I would have done 30 auctions online and by the end of it, it was really transparent and really good. But given a choice, I’d be always going with in-person auctions because the emotional value is often easier to create compared to a Zoom auction. In Zoom auctions people can easily disengage with the process and say, ‘No, I’ve reached my limit’.

“Whereas with an in-person auction buyers can get caught up in the hype and momentum and traditionally higher prices are achieved through that public forum versus an online auction.”

Peter Kakos, head auctioneer at The Agency, said it took buyers and agents some time to become comfortable with online auctions during Melbourne’s lockdown period.

“It has still been an effective way to sell property, it just felt weird,” he said.

“It was a bit like throwing a ball with your left arm when you’re right handed – you can still do it, it’s just a bit odd.

“Going forward, it won’t be the main option to use. It will certainly be a second option should that need arise.”