New data reveals how homebuyers are bidding at auction

The data

Gavl’s BidCapture technology collects a wealth of data from each of our livestreamed auctions including the number of bidders and bids, the amount of each bid and the duration of time between bids, just to name a few.

From a sample of more than 2500 Gavl auctions in Australia from March to September 2017, our data reveals insights that may help buyers navigate an auction (not to mention helping agents advise their vendors).

Average bid increments

Once the opening bid has been placed, our bidding analytics show that the average bid increment is $10,418. Our data also shows that the most common winning auction bid is $10,000.

Average auction pace

Our bidding analytics have revealed that an average auction sees 18 bids submitted over a course of 15 minutes and 47 seconds. Once the bidding starts, the average time from one bid to the next is 28 seconds.

 

The strategy

Based on the data, here are 6 strategies that may come in handy come auction day. But remember, no two auctions are the same. So come auction day, it’s important to be ready for anything:

  1. Take your (30 seconds of) time. A lot of us think of auctions as fast-paced with little time to consider our next move. But our data reveals that the average time between bids is just under 30 seconds. So stay calm and don’t feel pressured to rush into the next bid.
  2. Don’t be intimidated. Sizeable bids from other buyers shouldn’t scare you. In fact, you should expect to bid in both small and large increments throughout an auction. You never know when your competition might bow out. So before you even start bidding, work out how much you’re prepared to spend. Then keep bidding until you’ve reached your budget.
  3. Bid confidently. Our data shows that bids tend to slow down towards the end of an auction while buyers consider their budgets more carefully. By bidding confidently even when you’re approach the limit of your budget, you might convince other hesitant bidders that you’re ready to outbid them!
  4. Research the market. Auctions can seem daunting if you haven’t attended many. The best way to familiarise yourself with a specific market is to watch auctions in that area. Gavl lets you to browse auction results and watch auctions live and on-demand from anywhere in the world, making you an auction expert before you even attend your first auction.
  5. Be persistent. An average of 18 bids are made at any auction. So if you’ve been outbid a few times, don’t be disheartened. You could still win the auction, but you’ll probably need to bid several times before the hammer falls.
  6. Have a back-up plan. Auctions are fickle things. Clearance rates can range from 60 to 80%. So even if you’ve decided not to attend an auction because you think a property is likely to be out of your budget, keep your finger on the pulse. It might just pass in. And that’s a prime opportunity to negotiate a result within your price-range. Gavl’s great for this – shortlist the property on our app and if it passes in you’ll be notified immediately.
    Pro tip: negotiations tend to happen pretty quickly after an auction, so be prepared to come to the table with an offer immediately after it passes in.

 

The takeaway

Gavl CEO Joel Smith says:
“We recommend buyers spend the time to research auctions ‘on the ground’ in the areas they want to buy. Watching auctions will give buyers a better idea of the market they’re buying in and help them develop a bidding strategy.

Gavl’s livestreamed auctions allow buyers to watch remotely and provides them with a better understanding of the property market in their area of interest, as well as help them understand what happens at an auction.

Our platform does the legwork for buyers who find it exhausting and time-consuming to attend auctions in person.”

 


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