By Justin Nickerson, Apollo Auctions
Auction clearance rates are at unprecedented levels across southeast Queensland as bidders battle it out to secure a property.
With clearance rates consistently in the 80 to 90 per cent range, there are currently more people who missed out on a property compared to those who were victorious on auction day.
It’s obvious that people in the southeast have become more comfortable with auctions over recent years, given the higher number of properties being sold by this method.
However, there are a couple of myths that may be hindering their chances of success, which I thought would be a wise idea to dispel.
1. On the market call
It’s common for some bidders to wait for an auctioneer to say that a property is “on the market” or “we’re playing for keeps” before even raising their paddle to make a bid.
This is never an overly successful strategy in my opinion because you’ve got to be in it to win it.
But it’s even less of a strategy in Queensland because saying a property is on the market is not a legal requirement of a residential real estate auction.
2. First dibs
Another common misconception is that if a property is passed in, which let’s be honest is rare at the moment, then the highest bidder is given the first right of refusal to buy it.
That is simply not the case in Queensland.
Rather, if a property is passed in, then it’s open slather.
This means that any bidder, or any person at all, who is serious about buying the property is able to throw their hat in the ring.
3. Small bids
Another misconception is that by making small bids you will slow down the auction while somehow also improving your chances of being the highest bidder at the end.
Apart from annoying the auctioneer – especially in the early phases of an auction – making small bids will likely just motivate your competition even more.
The next thing that is likely to happen is another bidder will simply submit a number that blows your budget – and your non-strategy – out of the water.
