What the ban on property auctions means to apartment buyers and sellers

This weekend, nearly 2600 auctions took place on-site throughout the country.

All are being canceled now.

Property owners who sell their properties can choose to withdraw from the sale or go online for private sale.

These measures are part a larger lockdown that aims to limit the spread of coronavirus.

This list also included funerals, weddings, and social gatherings of any size.

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“Real estate auctions and open house inspections – in particular, open house inspections – that cannot continue,” Prime Minister Scott Morrison told the nation following a cabinet meeting overnight.

The timing of the news can cause serious damage to industry.

“We knew this was coming, but it’s a shame that it’s happened right now – it’s the two busiest weeks of the year, where we have the most amount of auctions,” Damien Cooley, Managing Director and Auctioneer at Cooley Auctions, told .

Real estate agents and auctioneers may have to adjust their fees to reflect the latest change, but were quick to reassure that properties will continue to be bought and sold despite the lockdown.

“The key message is that all realty onsite and in room auctions and open house inspections are cancelled as of Wednesday evening, but our members will still remain able to host virtual properties tours, private inspections, and on-line/digital/digital auctions, just as we have encouraged,” Ray White managing Director Dan White told Domain.

Melbourne is the city most heavily-geared toward auctions – this weekend it was due to have 1348, compared with 983 in Sydney, 120 in Brisbane, 63 in Adelaide and 13 in Perth, according to data from Domain, which is part-owned by Nine.

“[The announcement]Leah Calnan, Real Estate Institute of Victoria, stated that the auction process would be completely restructured.

“A large percentage of real estate agents have already made the transition to digital sales and auctions. Others will need to learn quickly.”

Buyers will feel the effects of auction cancellations.

Nicole Jacobs, buyer advocate says buyers should expect scrutiny regarding their readiness for purchase. But buyers should also realize that their advantage has changed in favor of them.

Ms Jacobs explained to us that agents may not be able to show you the property if you’re not financially ready.

“You must have driven by the property to view its location. If you feel that this is the right place for you, we recommend a 360-degree tour and scheduling an appointment.

Although both buyers and vendors are feeling the pinch of uncertainty, buyers should still be open to negotiation.

Ms Jacobs stated that some people understand that the market is opportunistic now.

“We don’t need to account for that high emotion level because people just want to sell.

“I can’t see flyaway auctions – because people aren’t standing out the front and getting emotional.”

Are you expecting properties to be less expensive?

Mr. Cooley stated it would be foolish to assume that they will be.

“Any vendor trying to sell is eager to make a sale.”

What is an online property sale?

Damien Cooley thinks there will be two types online auctions. He calls it “the future of real-estate.”

How does live-streamed bidding work?

“The auctioneer is being live-streamed and viewed by registered online bidders,” Mr Cooley, said. 

“They would bid as they would in a normal auction environment, and those bids are communicated to the auctioneer via the AuctionNow platform… we can accept or decline those bids exactly the same way as we can in other auction scenarios.

“The majority of auctions we have booked in, this is how we’re going to run them.”

What is the process of online house auctions?

An auctioneer oversees almost every auction. Each auction has an ending and a beginning. 

The auctioneer can manage the bidding increments electronically via the back end.

Cooley stated, “For instance, an auctioneer might say, ‘We only take $10,000 bids at the moment,'”

The auction will close if there are no new bids received within the last five minute. Any bids received within the last five minutes of the auction are subject to a slight extension.

“Both options are more applicable in this industry. This is an opportunity for many agents in realty to go digital,” Mr Cooley stated.