Auction Q&A with Jesse Davidson from AuctionWORKS

Auctioneer Jesse Davidson shares his thoughts on the auction process and his tips for vendors and buyers

How long have you been an Auctioneer?
I commenced my career as an Auctioneer in 2009 upon completion of my Bachelor of Business. I have now been in the industry for just over 7 years.

What do you enjoy most about your job?
Auctioneering is a very specific industry, so once I commenced my career I was immediately hooked. As an auctioneer we have the ability to play a pivotal role in what will most likely be the most important decision either a vendor or purchaser will make in their lives. I truly enjoy the pressure that comes with performing at an auction and having someone place their absolute trust in your hands. I also enjoy seeing the look on a first home buyer, or young families face when they are announced as the successful purchaser of a property.

Why do you feel an Auction campaign is the best way to sell property?
An auction campaign is without doubt the best way to transact property. A well marketed and run auction campaign will more than likely give a vendor the 3 major things they desire: the most amount of money, in the least amount of time, with a limited amount of stress. Further an auction campaign enables purchasers to bid in a transparent environment with no back room dealings. The final reason I feel an auction campaign is the best method of sale is that it gives the vendor a quality indication as to what the market will pay for their property on any given day.

How have Auctions been performing in the Sydney market recently?
Indications coming out of the back of 2015 stated that the market would likely level off and even come back. Further it was assumed that auction clearance rates would drop dramatically. Fortunately, these predictions have been proved to be incorrect. Whilst the number of auction listings for 2016 are down anywhere between 10-20% across the Sydney market, clearance rates still prove to be high, exceeding 78% for the month of April, and looking relatively similar for the month of May. This continued success can be partly attributed to the premise of supply and demand; however, it is important to note that buyer inquiry is still very high. Whilst inquiry is not at the levels we saw in the Peak of 2015, agents are reporting very comfortable numbers coming through their weekly opens, proving buyers are still trying to get into the market.

Do you have any advice for Vendors selling at Auction?
Don’t hesitate! Property listings are at some of the lowest levels we have seen in the previous years. Let the principles of supply and demand work for you and use the auction system. Capitalise on the high levels of inquiry whilst showing buyers you are a committed vendor. Nothing is more frustrating for a buyer than thinking they are wasting their time with a vendor who is “testing the market”. Commit to an intensive auction program, employ an auction orientated agency, and always make sure you have a quality Auctioneer!

Do you have any tips for Buyers participating in an Auction?

Make sure you bid if the property is within your means. Too often we hear of advice given to prospective purchasers advising them not to bid, wait until it’s “on the market”, start the auction low, don’t work with the auctioneer. All of this is poor advice. The best advice I can give a purchaser it to make sure you conduct your due diligence prior to an auction. Determine what you believe the property is worth, then work out a limit and stick to it. Finally if your limit is likely to be a limit like $1,500,000 or $1,600,000, try and add an extra $5,000 - $10,000 to take it off the even number, which are typically peoples limits and might even secure you the property.