Why agents are fast-tracking auctions

In fact, property agents are holding auctions early to ensure interest is ripe.

As such, REINSW resident sales chapter committee member and McGrath Epping agent, Betty Ockerlander, admitted to moving forward as many as 25 to 35 per cent of her auctions.

“You can think you have the makings of a successful auction by day 20 or 21, but one, two or three new competing homes may come to the market and steal our thunder,” said Ms Ockerlander.

“Many buyers in our area sit on the fence waiting to see if something better appears. As soon as a new listing appears, they jump ship to see if that is better or cheaper with a considerably lower below market guide).

“So, it is better to bring ours forward while we don’t have competition to divide our potential bidders,” she noted.

Similarly, Chadwick Real Estate and fellow REINSW residential sales chapter committee member Lynette Malcolm explained that by fast-tracking auctions, she is able to provide better results for her clients.

“I had a property where we were guiding $6.5 million based on comparable sales. It launched in January with a four-week campaign planned.

“Then we started to get multiple offers prior to auction, so we brought it forward by two weeks. It sold under the hammer for $7.42 million,” Ms Malcolm said.

Benefits for both parties

Ms Ockerlander, who has already brought forward eight auctions in 2021 that have all sold over reserve, agreed that there are benefits for both sides of the transaction.

“For buyers, there is less waiting for an outcome, so they can look at other homes.

“For vendors, they’re able to retain the high interest that is generated in the first two weeks of marketing without losing buyers to other homes that come on. It’s about keeping the excitement in the buyers before they cool off,” she said.

Ultimately, it is up to the agent to provide a good quality experience for both buyers and sellers.

According to Ms Malcolm, in a fast-changing market recovering from unprecedented impacts of a pandemic, transparency and education are key to success.

“We obviously work for the vendor, but we can’t have scenarios where agents become complacent. It’s really important for the reputation of our industry that we’re not just resorting to taking the quickest, easiest route, and there are ‘volume agents’ out there who would be tempted to keep volume up while the market’s good,” Ms Malcolm said.

“The message to agents is to keep the process transparent. We need to make sure we’re being fair and equitable… and the methods we’re using are not only in the best interests of our vendors, but [buyers, too, who] aren’t used to this market either.

“We need to educate them on what process is going to unfold so that everyone is being treated equally,” she concluded.