Ever heard it said that the auctions are six months ahead of the rest of the market? Or that auctions are the barometer for the industry in general? Well, if you’ve ever spoken to me, or most auctioneers, you would have heard it and possibly many times over.

But what do they, or should I say ‘we’, mean when we say this? The auction market is designed to move great volumes at speed. The market also resolves stressed and distressed positions, whether that be on the seller side, the funding side or the state of the asset.

The real element that makes the auctions a predictor of market sentiments, fluctuations and trends is, the bidding element (eventual price achieved through bidding) - this is a public, transparent, and unfettered metric that truly indicates what a person (or a group of bidders) believes a property is worth on any given day.

So how is that so different from when you buy a property through an estate agent, off-market and so on? Well, the answer is that normally your offer is made and is uncontested (don’t get me ranting about the farce that is ‘best and finals’ with estate agents), it is done behind closed doors and normally it is marketed to the immediate geographical area.

How does a seller know that they have achieved a good price or best price for their property? Normally, it is when they get an offer that matches their expectations. That could be an offer at the price the property was listed for, or it may be an offer above that.