The Property Source
I attended an auction for a four-bedroom character house in Sydney's Inner West. The auction revealed insights into the competitive market's bidding process. The auction featured five active bidders, each with a mix of bidding strategies.
Auction Start
The auction began with an opening bid of $2.1 million. The progression to the next bid of $2.15 million was slow, suggesting an initial dependence on social proof to encourage further bidding. However, momentum increased with a subsequent bid of $2.25 million, followed by rapid counterbids between the second and third bidders during the early stages. The initial bidder did not place any further bids.
Bid Progression
At one point, two bidders tried to place bids simultaneously — one at $2.26 million and the other at $2.275 million. The auctioneer proceeded with the higher bid. This pattern of competitive bidding, often in $50K increments, continued. This included another instance where two parties submitted simultaneous bids, with the auctioneer once again proceeding with the higher bid.
Final Stages
The competition intensified when a fifth bidder entered, pushing the price to $2.385 million. The auction's final phase was dominated by the fourth and fifth bidders, with bids increasing in small increments from $2.4 million to the final selling price of $2.421 million.
Ultimately, it was the party that entered the bidding late that secured the property.
Key Takeaways for Buyers
- Be Confident and Decisive: It's crucial to know your limit before entering an auction. This knowledge allows you to bid confidently and make quick decisions, demonstrating strength. Hesitation can undermine your strategy, and bidding simultaneously with another bidder can disrupt your confidence. To maintain control, always bid clearly and without delay.
Written by: Rhiannan Jenkins, Buyer's Agent - Sourced Property