Why a broker should attend auctions
When it comes to auction day, the obvious value a broker brings is this: having pre-approved buyers at the auction. A properly pre-approved buyer has a lodged application, approved back from a lender to say they’ve got the capacity to service a home loan.
Believe it or not, a broker can actually do so much more on auction day. And there are some key reasons why agents should have their broker partners at their auctions
Confident buyers are more likely to purchase at auctions.
Having a broker on the floor talking to their pre-approved buyers not only gives bidders confidence, it also makes sure that these buyers are not bidding above their limits and will be able to follow through with a sale if they are the successful bidder.
As the bids increase and the property hits the market, some buyers can get nervous. Having a broker there to assure them that they are spending within their capabilities is often all it takes to get the next bid.
Help the underbidders
After the hammer falls, what happens to all the underbidders? So many buyers miss out at auction because they didn’t know what their real borrowing power was. What a broker can do is talk to the underbidders - the people who are most likely to be your next buyers - and look after them post-auction.
A broker can help underbidders secure the right finance so that they are in a position to successfully buy at future auctions.
At Loan Market, we’re big believers that the most successful agent/broker partnerships are the ones that have a long term focus.