PHOTO: Wollongong couple Tyler Hoggard and Jess Farrell have recently bought their house at an onsite auction.(Supplied)
When Tyler Hoggard and Jess Farrell recently bought their first house in Wollongong, the auction took place in the kitchen of the Mount Pleasant home that is now theirs.
Key points:
- Timed property auctions see people register and bid on houses over a set period of time
- Real estate agent Neil Webster says it gives a greater level of transparency to the buying process as people can see bids are legitimate
- By conducting the auction remotely, buyers may not form such a strong emotional connection to a property
They had walked around the place, loved it and already pictured what life would look like living there.
“It [being there] definitely made an impact on the emotional connection, as it’s always hard to properly gauge the quality of a home from photos and videos,” Mr Hoggard said.
It is this emotional connection real estate agents bank on at auctions, but technology could end up nullifying the effect as more bidders are raising their hands from their home or office.
Timed online auctions are like buying a house on eBay, away from the theatre and pressure of a live onsite auction.
“I think that bidding online would have made for an entirely different experience and it would be much easier to let it go when the bidding had already gone further than we intended,” Mr Hoggard said.
“There’s a strong sense of urgency that comes with being present in the room.”
Online auctions offer greater transparency
Wollongong real estate agent Neil Webster recently sold a house in Shellharbour using a timed online auction.
He said while the technology might not be best for every property, it offered a level of transparency that added credibility to his industry.
“By using these platforms, we can operate in a more transparent way because people register, they’re bidding and it’s like eBay.
“You get notified every time an offer is made and you know someone is genuinely out there bidding against you.”
He said the online auction gave buyers more time to consider their options than an onsite auction.
If a higher bid comes in just before the auction closes, another five minutes is added to the auction each time the highest bid is exceeded.
“Sometimes the auction can go past the defined time because we have people throwing in that little bit more,” Mr Webster said.
“That’s what you’d be doing at an auction with the auctioneer saying, ‘First call’, ‘Second call’, then I can talk to the buyers.
“And online, it’s the same process — I’m calling the underbidder to see if they have more in the tank and if they’ll put another offer in.”
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