Purchasing a property post-auction can be a unique opportunity for buyers to secure a home at a potentially better value. However, it comes with its own set of challenges and strategies. In a recent conversation with Mayfield’s John Carew, a seasoned buyer’s agent, we explored the intricacies of post-auction purchases, the benefits they offer, and how buyers can prepare to act swiftly.
What Makes Post-Auction Purchases Different?
John explains one of the key advantages of post-auction properties is the vendor has typically undergone some level of price discovery. This process often involves recalibrating initial expectations, particularly in a market where buyers are cautious and sellers may have initially listed with inflated hopes.
“The good news,” John shares, “is that vendors are sometimes more realistic about pricing after an auction. However, that doesn’t always make the property easier to buy—it can still attract new buyers, creating competition.” Post-auction properties often have a set sale price or range, which can reinvigorate interest.
The key takeaway? While post-auction purchases can offer more favourable negotiation conditions, buyers must assess the property's value and suitability carefully. As John advises, “Don’t buy just because it seems easier; buy because it’s genuinely the right home for you.”
How to Prepare for Post-Auction Opportunities
Timing is everything when it comes to post-auction purchases. John highlights that “80–90% of properties sell within one to two weeks after passing in at auction.” Buyers need to be ready to act swiftly. This involves:
- Completing due diligence: Ensure the contract has been reviewed, strata or pest/building reports are completed and infrastructure and DA checks are done.
- Understanding fair market value: Familiarise yourself with the property’s worth to make an informed offer.
- Being negotiation-ready: Have your finances and offer strategy in place.
In many cases, buyers who have already been tracking the property before the auction are in a better position to negotiate effectively after it passes in.
A Real-World Success Story
John shared the story of a young couple who secured their first home in Northwood. The property had an auction guide of $2.2–$2.4 million, but the market response fell short of these expectations. After the auction, the couple purchased the home for $2.05 million—a significant saving compared to the vendor’s original hopes.
“They were ready—emotionally and financially—to act quickly,” John notes. “While they had to stretch slightly to reach their final offer, they walked away confident they had made a great purchase.”
This example underscores the importance of persistence and being open to opportunities that might initially seem out of reach.
Why Consider Post-Auction Properties?
Post-auction purchases highlight the shifting dynamics of the real estate market. For buyers, these properties can present a chance to secure a home without the high-pressure environment of an auction. But as John points out, success often hinges on preparation, clear value assessment, and staying informed.
His final advice to buyers? “Keep your ear to the ground. Even if a property feels just out of budget, the post-auction phase might bring it within reach. And in today’s challenging market, staying across a broader range of properties is essential.”