LJ Hooker expects to drive buyer and seller activity well into the spring selling season with the launch of its biggest ever auction marketing campaign.

Called the LJ Hooker Spring AuctionFest, the campaign has been designed to maintain momentum during what is already expected to be a very  active period for the Australian housing market.

The campaign will offer a range of cost-saving benefits to vendors who auction their property during the month of October.  These sellers will also benefit from strong national marketing support, including a new series of TV commercials.

LJ Hooker’s National Auction Manager Graeme Hyde said the event combines the best agents, auctioneers and marketing with a traditionally active buying time.

“Vendors listing with us now for auction can expect national buyer awareness, discounted marketing packages, strong local advertising, and other benefits and special incentives,” he said.

“Buyers too will have the benefit of an increased selection of properties and information to help them through the buying process.”

With the campaign only just underway, LJ Hooker offices are already locking in October auction dates.

“The Spring AuctionFest is proving appealing to vendors, and an October auction allows for an intensive spring lead up in marketing,” said Mr Hyde.

Auction clearance rates in many Australian cities and regions are showing a rise on figures of 12 months ago leading commentators to conclude that that there is a healthy property market ahead.

This is further supported by Australian Bureau of Statistics figures last week showing that housing finance commitments excluding refinancing are at the highest level for 18 months.

House prices appear to be holding strong with the LJ Hooker/BIS Shrapnel residential property index continuing to rise over the three months to July 2009, with all the major capitals recording positive quarterly results, ranging from 7 per cent in Brisbane and 5 percent in Sydney to 1 per cent in both Canberra and Adelaide.

Contact your local LJ Hooker team to become part of the Spring AuctionFest or visit ljhooker.com for office details.

GETTING COMFORTABLE WITH AUCTIONS

The auction method of sale is becoming increasingly popular for vendors and buyers as the benefits of selling and buying by auction are becoming more prevalent.

Traditionally, auctions were favoured for prestige and prime location properties but this is not the case any longer.

Sellers have more readily recognized the ability of an auction marketing program to best maximize the value of a property in most markets and auctions are no longer restricted to unique or upper end of the market properties.

There are also fewer buyers approaching an auction with trepidation in today’s market.

Buyers understand there’s no ‘smoke and mirrors’ associated with an auction and that transparency makes for a fair and open selling environment.

The only ‘trick’ to auctions is in the buyer’s preparation.

Buyer research must be comprehensive in two foremost areas – the value of a property in comparison with like properties that are selling and their own financial circumstances.

They may opt to try and secure the property before auction day or bid on the day.

Bidding is not a venture into the great unknown if you act based on your research.  If a potential buyer is worried that emotion may overtake logic when it comes to bidding, it is a good idea to distance themselves from the transaction and get someone with negotiating experience to act on their behalf.

SOME COMMON AUCTION CONCERNS ANSWERED FOR BUYERS

How will the auctioneer use vendor bids?

The auctioneer may need to speak on behalf of the seller and make a “vendor’s bid”.  This is both legal and indicated by the auctioneer for all to hear.  In a private treaty sale, when a buyer makes an offer on a property the vendor can counter offer, a vendor’s bid is essentially a counter offer.

Will the property be out of my price range?

Buyers need to do two things – get the necessary financial advice to determine what their price range is and do their own research to see what similar properties have sold for in the area.  Information on current market action is readily available.  Remember however that the auction outcome can never be 100 percent certain in terms of the price.

If I scratch my nose will I make a bid?

The auction process is very definite and all bids are clearly confirmed by the auctioneer and support staff.  State legislation dictates the environment by which you can bid.  The auctioneer and support staff should be consulted prior to the auction so you can seek clarify on what you need to do. People will not find themselves accidentally purchasing a property.

Will I pay too much?

If people are bidding against a buyer it means that they are prepared to pay more to have that property.  It is the buyer’s choice to continue bidding or to stop when their limit is reached.  The great advantage of buying at the auction is that the negotiation process is conducted in full view of all parties and buyers can see what other people are willing to pay.

What if I can’t be at the auction?

The auction process is not solely directed at selling under the hammer.  It is a three stage process and people can make an offer pre-auction, during the auction and post auction if the property did not sell under the hammer.  Buyers can also nominate someone to bid on their behalf as long as the auctioneer is notified prior to the auction and this person is the registered bidder.  Many auctions also allow bidding via phone but it is best to check with the sales agent to find out if this is an option.

Disclaimer:  This newsletter has been prepared by LJ Hooker Bundaberg.  Every effort has been made to ensure the contents are accurate at the time of publication.  LJ Hooker Bundaberg takes no responsibility for any subsequent action that may arise from the use of this newsletter.