When we mention the benefits of live online bidding, we normally talk about how
much the online bidders push up the price or how an online bid successfully wins
the property.
But yesterday at the 25 Perisher St, Horingsea Park (NSW) auction it was a totally
different story.
When an agent lists a property with PTY Property they get their vendors to sign
a vendor agreement. The vendor agreement allows the online bidders (or onsite for
that matter) to pay their deposit via electronic funds transfer (EFT). This allows
online bidders to participate even though they cannot personally hand over a cheque.
So instead they EFT the funds directly into the agent’s trust account.
However, yesterday it was used for an onsite buyer and made a huge difference
to the final sales price.
Before the auction the listing agent had three interested parties and was hoping
to sell the property for approximately $525,000. During the open house, just before
the auction, Geeta (a Horingsea Park local) saw the property and fell in love with
it. The only problem was she and her husband did not have their cheque book and
did not have time before the auction to get it. In normal circumstances they would
not have been allowed to bid.
However, because the vendor had signed the PTY Property Vendor Agreement and
we had a computer at location, they could now transfer the deposit via EFT if they
were the highest bid. This now allowed them to bid on the property.
The auction started at $500,000 and quickly moved to $520,000. Geeta and another
on site bidder battled it out for a further 4 minutes with Geeta being the successful
bidder at $543,000. In total there were 13 bids placed at a rate of 2.6 bids per
minute.
The bottom line is that if Geeta had not been allowed to bid the bidding may
have stopped at $520,000 with the property being passed in.
Having at PTY Property signed vendor agreement really does ensure all parties
are able to bid t the auction.
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