With the property market in the Central Coast and Newcastle forced to rapidly adapt to changing circumstances over the past couple of years, traditional property auctions no longer meet buyers' needs. The friendly auction is an evolution of the traditional auction, designed to fit the current-day marketplace with innovative and functional features designed to make bidding easier.
What is a friendly auction, what platforms support friendly property auctions and how has the property market changed? We answer all your questions below:
Newcastle is leading the way with ‘Friendly Auctions’
What is a friendly auction?
A friendly auction is an auction that’s far freer with information than your traditional property auction would be. Instead of hiding quality information behind charges and requiring payment to view the information, modern auction platforms have instead adapted their services to provide easy, digital access to property bidding.
There is no charge to bid on any property at auction. During a friendly auction process, buyers receive quality information like price guides, pest, building or strata reports at no charge, assistance with finance applications, access to solicitors, flexible deposit and settlement conditions by negotiation and advice on bidding.
Real estate agents like PRD Newcastle are pioneering the friendly auction format, removing the pressure and anxiety associated with buying at auction. For anyone who has previously tried to purchase a property at auction, they’ll understand that removing some of the stresses associated with the unknown can give buyers more confidence when it comes to auction day.
One of the biggest concerns for buyers is the due diligence process and the costs and time delays associated with organising 3rd party inspections or strata reports.
For property sales under a ‘friendly auction’ campaign with PRD Newcastle, all the 3rd party inspections for pest, building or strata are at the vendor’s cost, not the buyer’s. This enables buyers to do due diligence before offering or bidding.
They also offer;
Assistance on price guide and how to bid or offer before auction
Flexible deposit and settlement terms available by negotiation
More time to research, prepare and think about the price you want to pay than many ‘for sale’ properties
Their approach provides buyers and sellers with a modern, transparent and ethical way to transact property. This transparency is more in line with what buyers expect from the property marketplace today.
Online auctions the norm for buying during lockdowns
Much like any other digital service, platforms like Openn Negotiation and Sold Online allow bidding without hurdles, making it far easier for investors and individuals across Australia to purchase property in an auction setting. Flexible deposits, advice on bidding, bid visibility, and access to solicitors are easily available, making for a friendlier market overall.
If the idea of a comfortable bidding environment appeals to you, there are a couple of key platforms you may want to consider:
Openn Negotiation delivers transparency in real estate, offering services utilised by individuals and estate agents. With quick online registration and fast bidding, buyers can see all prior bids, and sellers can better achieve the best price possible on their property sale with flexible terms. Openn Negotiation also makes it easy to withdraw bids if needed.
Sold Online is another accessible, practical online friendly auction platform that meets all necessary NSW regulations for property sale and purchase. With a unique Final Call Feature that continues the clock for bids within the final three minutes, Sold Online values transparency and accessibility in their auctions over a set window of time from 1-14 days.
AuctionNow is an online bidding platform, particularly helpful for buyers who can’t attend an auction in person. In order to bid on a property, the buyer must register and provide their supporting documentation like identification and then the real estate agent will review your registration, and grant you access to bid at the auction. There are also long auctions called ‘Buy Now Auctions’ whereby bids can be placed over a 30 day period.
How has the property market changed?
The property market of 2021 is an entirely different thing from what investors and individuals were working with from 2018 to 2019. Buying property is no longer as simple as getting in your car and viewing a couple of homes each day. With COVID-19 restrictions and continually changing lockdowns, a digital alternative to the in-person purchasing process was a must.
Friendly auctions are one powerful evolution that has stemmed from these limitations. With properties purchased solely based on their online information, making auctions as accessible and information-dense as possible makes sense. The more information sellers provide, the more likely individuals are to bid without seeing that property in person.
Friendly auction platforms help facilitate this shift in buying requirements, providing all the information, details and quality guidance needed to help make digital auctions the new standard of Australian property sales. Full visibility is here to stay, and with Australians already taking full advantage of friendly auctions, it’s likely that these platforms are only going to grow in size and popularity.
Looking for a multi-award-winning Newcastle mortgage broker?
When it comes to buying at auction, having a pre-approved loan in place is key, as ones the hammer falls, you’ll have to pay the 10% deposit, and you need to have confidence the bank will lend you the funds you required. Working with an experienced Newcastle mortgage broker who understands the market and bank valuations is key to ensuring you don’t over bid. Talk to the team at Mint Equity who are multi-award-winning mortgage brokers who will manage the entire loan application and approval process, free of charge.