Buyers Agent (Auction) Sydney

[holztor]

Morning all,

I'm interested in some information about engaging a buyers agent for the auction bidding process only. I have a property that I am interested in, currently completing DD. I may not be able to attend the auction, and it got me thinking that since this would be my first place (PPOR), it might be best to have a professional attend the auction on my behalf.

What kind of fees are involved for a buyers agent just to bid at the auction, and what is the process involved? Do fees vary depending on success? Also happy to take recommendations.

Cheers.

 

[Jamie M]

There's some good BA's on here.

Alan Fox from Propertunity is one that my clients have used and been happy with.

Cheers

Jamie

 

[depreciator]

Any chance of a sale before Auction? Given the craziness of auctions in Sydney right now, that would be great.

 

[holztor]

Any chance of a sale before Auction? Given the craziness of auctions in Sydney right now, that would be great.

I've been told it's going to auction as "the vendor considers it to be a more transparent process" - HA! more like a more profitable process.

I guess there always is the option of a sale before auction as I understand that the REA must pass on all offers? So even if they want to go to auction, there is always the chance that they receive an offer and decide to take it to avoid the potential uncertainty of an auction.

 

[Propertunity]

I've been told it's going to auction as "the vendor considers it to be a more transparent process" - HA! more like a more profitable process.

In almost every case, where we manage to buy prior to auction, I would estimate the vendor would have received a higher price (not from us) if they had proceeded to auction.

I guess there always is the option of a sale before auction as I understand that the REA must pass on all offers?

I suggest you don't do this UNLESS you know the vendor is open to selling prior - otherwise all you are doing is helping to set the reserve.

So even if they want to go to auction, there is always the chance that they receive an offer and decide to take it to avoid the potential uncertainty of an auction.

That's the fear for vendors going to auction, which as Buyers Agents, we would use to our advantage. But the reality is, that in the current Sydney market with 85-90+% auction clearance rates, there's a pretty good chance of a sale on auction day.

 

[depreciator]

there's a pretty good chance of a sale on auction day.

And a pretty good chance of a nutty price. I watched an auction down the street from my house a couple of Saturdays ago and the price that awful house went for was nuts.

 

[Propertunity]

And a pretty good chance of a nutty price. I watched an auction down the street from my house a couple of Saturdays ago and the price that awful house went for was nuts.

I agree with you Scott. The problem is, that one nutty price can be ignored by valuers as being "out-of-line" BUT when you get a dozen "up-there" prices it resets the baseline and that becomes the norm.

 

[depreciator]

That auction down the road was interesting. It's such an awful house from the outside and I have heard that it's more ugly on the inside.
The bidding stalled with the highest bidder on $1.1m. Then they were summoned into the house by the agent to chat with the owner I presume. I wandered off after 5 minutes to look through a house that is for sale diagonally opposite. Twenty minutes later, there was still no word on the ugly house. I heard yesterday it went for $1,193m. No sure how reliable that information was, though.

 

[Propertunity]

I heard yesterday it went for $1,193m. No sure how reliable that information was, though.

#12 *****ior went for $1,193,000 on 2/3/15.

 

[depreciator]

That was it. I'll be interested to see what the one diagonally opposite goes for at auction. It's a better location and a better house, albeit weatherboard.
The person out the front taking names on the auction was quoting 'around $1m.'
I said to the agent inside, 'You'd be wanting well over $1.3 for this one, Filippo. You should have a word with your mate outside about underquoting.'

 

[Jacque]

Morning all,

I'm interested in some information about engaging a buyers agent for the auction bidding process only. I have a property that I am interested in, currently completing DD. I may not be able to attend the auction, and it got me thinking that since this would be my first place (PPOR), it might be best to have a professional attend the auction on my behalf.

What kind of fees are involved for a buyers agent just to bid at the auction, and what is the process involved? Do fees vary depending on success? Also happy to take recommendations.

Cheers.

Hi Holztor

Depending on auction date and area, fees and BAs available will vary. My advice is to book in early if you want someone reputable and experienced. It's not just about bidding but how to handle negotiating if it's passed in. There's been lots of posts on this subject so feel free to use the search option here.

Average cost is around $550 to bid and a further $550 to secure. Hope that helps. Feel free to ask us if free- though it will depend on area (we don't cover the south) Thanks

 

[Jacque]

I've been told it's going to auction as "the vendor considers it to be a more transparent process" - HA! more like a more profitable process.

I guess there always is the option of a sale before auction as I understand that the REA must pass on all offers? So even if they want to go to auction, there is always the chance that they receive an offer and decide to take it to avoid the potential uncertainty of an auction.

As Alan's said, every sale/vendor/agent is different and you need to be able to ascertain the situation and strategize your offer to maximise your chances of securing the property within your budget/price range.

We are finding in this market that, unless you make a pre-offer early in the campaign (where the vendor needs to decide that "a bird in the hand" scenario is more attractive than waiting for auction) going in with an offer too close to the auction can just serve to set a benchmark and/or set off a blind auction situation.