The announcement last week that onsite auctions were back on the permitted list for real estate agents in metropolitan Melbourne was a further pleasing sign that the property market is slowly but surely returning to more ‘normal’ conditions…if there is such a thing as normal in 2020.
However, if you are considering selling before the end of the year, there are a number of restrictions you need to be aware of if you want to have an onsite auction. You also need to be aware that our advice as Advocates is that not everyone should be looking at auctioning in the current market conditions.
The latest rules affecting the conduct of onsite auctions in Melbourne include:
- The auction must be conducted outdoors.
- Attendees at the auction are limited to 10 members of the public, plus the vendors and a minimum number of agents to conduct the auction.
- Auctions in metropolitan Melbourne can only be attended by residents of the metro area. If you live in regional Victoria, you can only bid online.
The key advice if you are planning on bidding at an onsite auction this Spring is to make sure the agent is aware of your interest before the auction. Given the limit of 10 bidders, buyers who register their interest later in the campaign may have to bid online if there are already 10 or more registered bidders.
Other measures that you may see agents doing as a result of these restrictions include holding the onsite auction in the back yard to discourage spectators from trying to join the crowd during proceedings, and marking bidder positions on the ground to maintain social distancing rules.
Of course, not all auctions will be conducted onsite, as online auctions seem to have gained acceptance with a growing number of home buyers around Melbourne. Well-run campaigns have been achieving some good results for vendors in many cases.
It is important to remember that before you decide on what form of auction to utilise when you sell, the bigger question is whether your property, your area and your situation are suited to an auction at all. Helping you to choose the right type of strategy and the right agent is just part of the service we provide at Ian Reid Buyer and Vendor Advocates, so be sure to give us a call on 9430 0000 to discover the difference our experience and objectivity can make to your sale.
You’ll also find lots of helpful suggestions in our free booklet, “Fatal Real Estate Traps Exposed”.