You Have to Know When to Hold Them
In-room Auctions vs On-Site Auctions
As a leading Queensland auctioneer, I am often asked the question… “Are on-site auctions or in-rooms more effective?” This question is music to my ears because it means I am discussing an auction strategy with an agent that doesn’t need me to explain, showcase or demonstrate why auctions will generate the cleanest contracts, the best prices, the safest transactions and the happiest sellers. My answer is essentially, you have to know when to hold them! ‘insert Kenny Rogers musical interlude here’. In my experience, I believe that there is a time and place for both on-site and in-room auctions and this decision must be driven and directed by strategy.
The most desirable outcome from any auction is active and competitive bidding resulting in an unconditional sale under the hammer, above the reserve price. The likelihood of this occurring is certainly determined by numerous factors, including but not limited to, the market conditions, underlying strategy, the marketing and sales process managed by the agent and the auction event itself, whether it be on-site or in-room. There are distinct benefits to both on-site and in-room auctions, so the question should rather be “When should I hold an on-site auction or an in-room auction?”.
In-room auction events provide a condensed competitive arena to achieve market leading results with competition, anonymity and efficiency. The allure of an in-room is that each buyer sees many other buyers in the room and the pressure to perform and outbid the competition is tangible. From an agent and agency perspective it enables a higher volume of listings to be processed in a more time efficient manner while creating an opportunity for promotion, branding and an overall event performance that could potentially impress future sellers. You can’t just hold an in-room auction anywhere though, instead in-room auctions should ideally be held at a venue in your local market, making it easy for buyers and sellers to congregate as your brand supports a local business within your community. In-room auctions held at stale, starchy corporate headquarters or in a function room should be avoided as they are often located some distance from the subject properties being auctioned, while they lack atmosphere and can be uninviting or intimidating – two emotions you do not want buyers feeling on auction day!
Consider an in-room auction as a ‘seasonal event’, where the agent and agency can showcase their team and brand simultaneously. Together, they present a high volume of listings, unrivalled expertise and professionalism in one easy location making it convenient for buyers and sellers to unite, outside the standard weekend auction timeslot. Unlike the standard on-site model which limits the auction arena to one property per hour across multiple locations, the in-room auction strategy supports a high-volume approach, requiring more agents, more listings and more buyers to be an overwhelming success.
On-site auctions really are still a driving force when it comes to delivering exceptional results. Holding the auction on-site allows buyers to not only feel the competition but they also experience a tangible and emotional connection to the property in the moments prior to the auction and we all know that evoking emotion is one of the key ingredients to achieving a premium price. The other unrivalled benefit to an on-site auction is that you can really reach the streets in terms of showcasing your skills to future local sellers within the footprint of your subject property. It is unlikely neighbours will attend an in-room auction on a Thursday but hold an auction on a Saturday afternoon and the neighbours come out in force allowing you to start the conversation with your upcoming vendors. An on-site auction gives the opportunity for the property and the listing agent to shine and not get lost in the volume at an in-room event. On-site auctions are an exceptional opportunity to secure a great result for your seller with competitive and emotional bidding from buyers, while providing an unrivalled prospecting tool for you to secure future listings without all the grunt work.
At the end of the day, auction is a vehicle for securing an unconditional contract at the highest possible price point in the current market. The success of an auction campaign relies heavily on numerous factors and certainly your choice of venue and auctioneer will impact that. The team at Holmes Auctions work across residential and commercial property and will facilitate both in-room and on-site auctions, while providing support throughout your auction campaign and training in the lead up to and following your auctions. If you would like to partner with an auctioneer that will provide honest and reliable advice and support, while turning up on the day to help you secure the best results for your sellers, then reach out to Holmes Auctions today.
For award-winning results, book your next auction with the dynamic Holmes Auction team today: BOOK NOW