Is it worth hiring a professional bidder for your property auction?

An overview of using professional bidders for a property auction

Known for their fast-paced and competitive atmosphere, property auctions can be an adrenaline-fuelled mix of excitement, stress, and exhilaration.

With the pressure of competing against other buyers and the uncertainty of the final sale price, the bidding process can be particularly daunting, whether you’re a first-time buyer or a seasoned investor.

This is why many potential homebuyers wonder whether it’s worth hiring a professional to bid on their behalf - a decision that naturally comes with benefits and drawbacks.

To help you decide whether hiring a professional bidder is right for you, let’s explore more about this service and its pros and cons.

What is a professional bidder?

A professional bidder - also known as a buyer's agent or auctioneer - is an individual or company hired by a prospective buyer to bid on their behalf at an auction. They aim to secure the property at the best possible price and terms.

Professional bidders typically have a lot of experience and expertise in the auction process, including bidding strategies, negotiation skills, and knowledge of the local property market.

A professional bidder may charge a fee or commission for their services, which you’ll negotiate before the auction.

Pros of hiring a professional bidder

Expertise and experience

Professional bidders have a solid understanding of the auction process and how to negotiate with auctioneers and other buyers effectively.

This expertise can give you a competitive edge and increase your chances of securing the property at the right price.

Emotional distance

With emotions running high, bidding at an auction yourself can lead to impulsive decisions and potentially overpaying for a property.

A professional bidder, on the other hand, will be solely focused on getting the property at the best price without being swayed by emotions.

Negotiation skills

Professional bidders are skilled negotiators who know how to handle the complex process of auction bidding.

By strategically placing bids, assessing the competition, and negotiating with the seller or auctioneer, they’re more likely to achieve a favourable outcome.

Save time and effort

Attending auctions and bidding on properties can be time-consuming and stressful, especially if you're balancing other commitments.

From registration to bidding, professional bidders can handle all aspects of the auction on your behalf, saving you valuable time and energy.

Cons of hiring a professional bidder

Cost

Hiring a professional bidder will typically incur additional costs, such as their service fee or commission.

While their expertise and negotiation skills may justify the expense, it's essential to consider whether the potential savings or benefits outweigh the cost of their services.

Lack of control

Trusting someone else to bid on your behalf means you won’t have as much control over the bidding process or outcome.

While professional bidders act in your best interests, you may feel disconnected from the auction experience without the ability to make on-the-spot decisions during the bidding process.

Limited availability

As professional bidders might have multiple clients and commitments, they may not always be able to attend every auction on your behalf.

It’s important to understand your bidder’s availability and set any expectations from the start to avoid disappointment.

Personal preference

Some buyers may prefer to attend auctions themselves, as they enjoy the excitement and challenge of bidding in person.

While hiring a professional bidder can offer benefits, you’ll need to think about your preferences and whether you’d feel more comfortable handling the process yourself.

For homebuyers who’d prefer to have the bidding process handled by a professional, hiring a bidder can be a fantastic option that saves them time and stress. However, other property seekers may prefer to go it alone and have the control of bidding themselves.

Whatever you decide, we wish you the best of luck and successful bidding!

Keen to learn more about the home-buying process? Check out our other articles and stay in the know about all things home loans.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.