Strong advice: Never let a selling agent bid for you at auction.
Buyers, you need to be aware that selling agents bidding on your behalf at auction have a clear conflict of interest. They should not be acting as Buyer’s Agents and/or bidding on your behalf at an auction.
Selling agents are being paid by the vendor to sell the property at the highest possible price. They are not acting in your best interests as the Buyer.
When you pay for any professional services you need to understand who is representing you and ask yourself: Are there any possible conflicts of interest?
For instance, if the selling agent who is bidding for you at the auction is from the same real estate agency as the one representing the vendor, then it’s in the agency’s best interest for you to buy the property at the highest possible price.
A tactic selling agent’s often use is to offer to bid for you at an auction ‘for free’ (and then urge you up in price at the auction) is so that they can win the listing of the sale of your current home on which they will receive a commission.
Either way, selling agents have a huge financial incentive to help a Buyer purchase a property with their help at auction and that’s not in the Buyer’s best interest.
In an auction environment it’s extremely important to understand what the market is doing to ensure you pay a fair price.
A truly independent Buyer’s Agent acts for you as the buyer and takes a fee for doing so. They do not have properties listed for sale nor is their business involved in direct selling. Don’t put your faith in the wrong person on auction day.
Your Australian Property Buyers Agents lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property Buyers Agents offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf.
Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property.