Two similar properties can go to auction and receive very different levels of interest. One might attract several determined bidders, while another receives only a handful of offers. So, what makes buyers compete for one property more than another?
While location and condition matter, successful property auctions are often influenced by a combination of pricing, presentation, marketing and buyer opportunity.
An Attractive Starting Point Gets Buyers Interested
The way a property is priced before auction can have a significant impact on the number of potential bidders it attracts.
A realistic guide price can encourage buyers to investigate the property, arrange viewings and review the legal pack. Once several buyers become interested, competitive bidding can help determine what the market is prepared to pay.
Sellers also have protection through the reserve price, which establishes the minimum acceptable figure. If you’re unfamiliar with the difference between these figures, our guide to how reserve prices work at property auctions explains the process in more detail.
Buyers Need Enough Time to Do Their Homework
Auction buyers rarely bid successfully on impulse. Serious purchasers want an opportunity to inspect the property, understand its condition, review the legal information and organise their finances.
Making relevant information available before auction day allows potential bidders to make informed decisions. The easier it is for a buyer to understand what they’re purchasing, the better prepared they can be when bidding begins.
Potential Can Be Just as Appealing as Condition
A property doesn’t necessarily need to be immaculate to attract competition.
Investors and developers may be particularly interested in houses requiring modernisation, tenanted properties or homes with opportunities to add value. Town & Country’s existing auction guidance notes that auctions can attract buyers looking for refurbishment and investment opportunities.
For sellers, this means spending heavily on improvements before listing isn’t always necessary. The important factor is presenting the property honestly and reaching buyers who recognise its potential.
Marketing Creates Momentum
Competitive bidding requires more than one interested purchaser. That’s why exposure before the auction is so important.
Professional photography, property portals, targeted marketing and an established buyer database can all help put a property in front of relevant purchasers. Town & Country Property Auctions markets properties before its scheduled auctions, with buyers then competing once bidding opens.
Creating the Right Conditions for a Successful Auction
No formula guarantees a particular number of bids or final selling price. However, realistic pricing, good preparation, transparent information and effective marketing can all help create stronger conditions for competition.
If you’re considering selling your house at auction, getting professional advice early can help you understand your property’s likely buyer audience and how best to position it before bidding begins.