There is no doubt that the Covid pandemics multiple lockdowns have changed many aspects of life as we know it. People have needed to adapt to new and innovative ideas and Real Estate has been no different. This sector has needed to adapt rapidly to these changes in order to operate effectively.
One such thing that has changed in recent times and has helped the property industry thrive is virtual auctions. They have become an invaluable tool designed to benefit buyers, sellers and agents. Even though the shift to virtual auctions has been somewhat forced, we think it is a natural progression of property transactions and is just an example of another industry making its way into the online world.
Let’s explore some of the benefits of virtual auctions and the place they play in the post-covid Hunter Valley property purchase process, as well as some tips and tricks for success. While this may not be suitable for some buyers, we have seen an increase in the option of having this available.
Whether online or in person, prior to any auction, it goes without saying it is imperative to do initial and ongoing research to ensure the best chance of success. Doing simple things such as comparing properties that have recently sold, the suburbs in which they have been sold in and how much they have sold for will give you a more educated view. This is a process that can be completed simply online and you can read some of the recent property trends in the Hunter Valley including record sales in our News and Insights section.
The Virtual Auction Process
The virtual auction is simply an extension of the traditional auction process however, the big difference is that they are conducted online and can be done so in the comfort of your own home (this can be exceptionally advantageous for those who do not live in the area and are looking for a tree change as this can save on travel time).
Initially, virtual auctions were conducted on more common technology such as video calls on platforms such as Zoom or Google Meets, however as time has gone on a number of purpose built virtual auction platforms have entered the market.
The virtual auction process follows much of the same formula as more traditional auctions with multiple vendors, an auctioneer present, and with the highest bidder winning. Of course other concepts such as a reserve price, a property being passed in and the fact that the highest winner is legally obliged to purchase once the hammer has fallen make this no different to a standard auction.
As with a traditional auction when hoping to purchase Hunter Valley property, you will need to register for participation in the auction and confirm your details. This is a relatively simple process in which you will need to provide proof of identity and contact details.
When looking for Hunter Valley property, it is essential to have finances pre-approved and know what your limit is (and to not exceed your limit). In the event that you win the auction, you will be required to transfer a deposit across almost immediately post-auction to secure the purchase – and just because the purchase occurs online does not mean the winner doesn’t have the same obligations as a traditional auction.
A clever little trick to save stress and frustrations is to have a separate bank account set aside with the deposit amount that you expect to pay if you’re successful. Also, ensure that the transfer limit on the account exceeds what the deposit amount may be to ensure that it is a smooth process should you be the auction winner.
Transfer And Contracts
Most purposely built virtual auction platforms have inbuilt contracts that can be signed digitally at the end of the sale to secure the purchase in a timely and easy manner. Once any documentation has been completed and the formal documents have been signed (digitally), the agents will be in contact with you directly to organise the next steps for you.
Relax And Enjoy
One of the major benefits of virtual auctions as opposed to more traditional auctions is that the whole street fanfare scenarios can be avoided with less stress. You have the opportunity to be as relaxed as you like and in an environment such as the comfort of your own home. This has the advantage of allowing you to sit back and enjoy the experience, meaning there is less chance of being caught up in the hype of the moment, leading to more rational decisions. That being said, make sure not to get caught in the hype of FOMO (we have all spent an extra few dollars on an Ebay auction that we would have liked so don’t do the same with a property auction!)
Hunter Valley Benefits
Even with the lifting of lockdown restrictions we have seen how the auction and property purchase process can be completed purely online with aspects of this likely to remain. There are a number of benefits to this and one that we do see quite often is the time that it can save those who would like to move to the Hunter Valley from another area of Australia, such as relocating from Sydney, or perhaps even from another state. If you are considering a move to the Hunter Valley region, we’re exited to welcome you into this friendly and beautiful community.
Want to learn more, let us here at Bailey Property Group help you with your Hunter Valley property purchase.