I think I talk about this too much…so here we go again, and this time to make it more engaging for everyone I have added some real life case studies, from us, members of our Auction Buyers Club and examples from auctioneers and bridging lenders who have shared stories with us from the past.

Bidding is an excellent method of negotiation. Yes, I did just say that bidding is a form of negotiation. Except, bidding isn’t a buyer negotiating with a seller, it’s one buyer bidding against another, or many others. The power of this is exceptional.

An astute seller knows that the market determines price, regardless of what a valuation report says (anyone who has had a down valuation or a nil valuation knows exactly what I mean) and what an estate agent or auctioneer estimates what the asset may be worth.

Obviously, it goes without saying that motivating a market to compete and bid in a powerful way only really works if a few other pre-conditions are met;
1. Price: you have to price the asset competitively to create a competitive buyer market.
2. Marketing: you have to offer the property in the most receptive auction for that asset.
3. Terms: you have to offer attractive terms (e.g. offer a longer completion time) and a complete legal pack.

I was going to add something cheesy and self-promoting to the list like ‘make sure you speak to an independent auction advisor (like HAMMERED) to make sure that you are pricing correctly for success and that the property is marketed in the most appropriate auction company for the best results…but I like to think I was the bigger man for not stooping to that level!