Should you let a selling agent bid for you at auction?

By Janet Spencer

Auction advice for property buyers from Buyer Solutions

Last Saturday Buyer Solutions was bidding at an auction for our investor client in Melbourne’s eastern suburb of Forest Hill.  The auctioneer took centre stage and three of his colleagues placed themselves amongst the bidders to assist buyers in attendance.

From the buyers perspective is this a good or bad thing?

Should they take advice from the selling agent? Surely the auctioneer can answer all relevant questions prior to bidding commencing and then buyers should be able to bid in an open and transparent auction forum.

What actually happened was that all three of the selling agents isolated buyers who were bidding and pressed them to bid higher and higher as the auction progressed.

Despite the selling agents best efforts, two hit their limit and withdrew from bidding. The third, a young home buying couple, were then pressed to reconsider their limit multiple times by the oldest and most experienced selling agent in attendance, the auctioneers father in fact.

As a seasoned and experienced Buyers Agent, I have bid at literally thousands of auctions over the past 20 years. I sensed that these young buyers were quite agitated, making calculations on paper, struggling to decide and ultimately bidding as they were urged to do.

They out bid me, paying quite a high price for the property and one that we were not prepared to pay, as professional buyers and having done our research.

So buyers, remember, the selling agent works for the seller. The more you pay, generally the more they get paid. They don’t work for you. They don’t care if the bank won’t value the property at what you pay and you have a lending shortfall. They don’t care if you extend yourselves and can’t go out to dinner or have a holiday once you move in.

Please consider hiring a reputable, independent Buyers Agent. They should also be members of the REIV and an accredited REBAA member. You pay them for their advice and representation and they have a duty of care to you, not the Vendor/seller of the property.

Here’s a link to an article from REBAA on this topic. Don’t let a selling agent bid for you at auction

Buyer Solutions offers people about to buy a property a 45 minute, no cost, no obligation consultation.  We provide advice and tips on buying well and not overpaying for real estate.

For independent advice on buying or selling real estate, contact Janet Spencer at Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au

Buyers Agent, Buying property, First home buyers, Home buying, Investment property

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