A hybrid model: Will online auctions still hold place in market? Agents weigh in

Vendors, agents and buyers have performed another quick pivot with the recent lifting and easing of COVID-19-driven property selling restrictions.

Josh Morrissey of HIVE Property says buyers have been quick to return to open homes, which are capped at 20 persons as of midnight May 29 – a lift on the 10-person limit imposed earlier this month.

“Numbers are growing, but we are carefully managing the flow of people. Everyone – buyers and sellers – have been really understanding and happily working with the process,” he says.

“We’ve noticed a real difference, however, with regard to the auction process.

“Both buyers and sellers showed a definite preference toward the live, on-site auction.”

Morrissey says different methods would find their own place as restrictions eased.

“It’s really up to sellers and buyers – we’ll make it happen to suit their preferences,” he says.

Stephen Bunday of LJ Hooker Dickson says buyers have come back to the open home option with renewed energy.

“We had 13 groups through one property in Campbell last weekend – and it had been on the market some time,” he says.

“Another in Downer had about eight groups through, with three on their second inspection and one strong offer resulting.”

Bunday reports a different experience with streaming online auctions.

“We had a lot of people embrace it but I agree, there’s nothing like a live auction,” he says.

“I think the future is probably a hybrid model that invites on and off-site bidders. People who are out of town could still take part – it’s a more flexible approach.”

Michael Wang of Independent Gungahlin agrees and says there’s likely a path that could incorporate both the “digital and the analogue” experiences.

“Online auctions can certainly deliver a result. We invested time in getting bidders familiar with the process,” he says.

“We could be running the auction online and on-site with interest as far away as Dubai and the UK.

“That’s an approach that may well continue.”

Rick Meir of Hayman Partners says vendors and buyers seem split on a preference between “high tech or high touch”.

“It may simply be explained by the level of individual comfort with either option,” he says.

“Some people like the extra buffer that online provides, while others prefer the atmosphere of an on-site auction.”

Meir says connection reliability can present as an issue in an online auction and a plan B needs to be in place.

“That can be fixed with a mobile phone call to an on-site agent if there’s a dropout,” he says.

“Whichever way you’re bidding, the best tips are to go early, go strong and show everyone else you mean business.”

• Pivot. Social distancing restrictions on selling channels – like home opens and on-site auctions – have been eased. Sellers and buyers are embracing this level of newly found freedom with renewed energy.
• Openings. Home inspections still need to be carefully managed to align with social distancing requirements. Agents are ensuring no more than 10 people inside a home and providing cleansing and cleaning agents.
• Auctions. Streaming auctions won many fans during lockdown while others still prefer the on-site atmosphere. A hybrid model that caters to both groups may well find its place as a future selling option
• Online. Ensure your agent has thoroughly briefed you on their specific digital process – there are many different auction platforms. Pre-register and have a plan B in case of connectivity dropout.
• On-site. Ensure you have inspected the property and register as a bidder with the listing agent. Arrive early and gauge the interest of prospective competitors. There’s often a final inspection before the auction.
• Bidding. Whichever way you are participating, have pre-approved finances, and know your limit but include a contingency. When the auction starts, go hard and go early – let others know you mean business.