How to bid at auction in a cooling market

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The dynamics of the auction floor are changing, with house hunters increasingly making low offers or holding back from bidding, but that’s not always the best approach.

Here’s what buyers need to know amid the cooling market:Fewer homes are selling well above their price guides and reserves, and more property guides are dropping in the lead up to auction, says Sydney buyer’s agent Oliver Stier, principal of OH Property Group.

While A-grade properties are still exceeding expectations, second- and third-tier properties are selling closer to price guides, says Ray White NSW chief auctioneer Alex Pattaro. In a cooling market, agents typically push to sell prior if they have only one or two serious buyers, Stier says. Opening bids are now slower to arrive, Pattaro says, and bidders are remaining silent altogether at an increasing number of auctions. That is to the buyers’ detriment when there are numerous parties – with the group’s auctions drawing an average of four registered and 2.5 active bidders – as they then compete post-auction in a less transparent environment.

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