Auction

Results from our 18 February Auction

Our third Auction Portfolio for 2019 was introduced to buyers with a pleasing number of both potential buyers and interested public attending.

It always takes a number of weeks into a new year to find any differing trends from the final weeks of the previous year and so at this early stage of the year it is evident that there is active buyer activity and we are therefore identifying both buyers who are able to meet the terms of the Auction For Sale and Purchase Agreement which is a totally unconditional agreement and those conditional buyers who still require to meet finance criteria, property to sell or other buying aspects.

Our challenge is to meet vendor price expectations with buyer price expectations.

This portfolio again included a variety of property type throughout our Eastern Beaches residential areas with the addition of Mt Wellington and Glen Innes. The Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions, enjoyed a pleasing attendance, including people who had registered buying interest, those who had expressed conditional buying interest and those who came along to see what is selling and for what price to give an idea of what is happening very currently in the real estate market.

All the properties we had identified with registered buying interest, attracted bidding interest and the balance of the portfolio we were able to “showcase” attention to, to those still researching buying opportunities, while working with the buyer interest we had identified prior to auction.

Highlights of sales under the hammer included:

  • 1/ 41 Baird Street $900,000
  • 22  Downsview Road $1,115,000
  • 16 Prince Regent Drive SOLD U/C Post Auction

2B Kallaroo Place completed a conditional sale immediately post auction and emphasised the statement above where I referred to identifying both unconditional and conditional buying interest.

At the time of writing this report 3 further properties are being negotiated.

We continue to work with all potential buyers who have inspected properties within these portfolios.

There are always various reasons why potential buyers cannot meet the terms of an Auction For Sale and Purchase Agreement which is a totally unconditional agreement, however, as stated above, we try to work with these potential buyers to attract the best conditional sale for our client vendors.

I referred to “showcasing” properties as we offer all properties, within the portfolio, as unlike some, we don’t withdraw properties from auction day. As happens so often, a new inspection has resulted from an attendee buyer who reacted to the introduction of the property as – “that’s what I have been looking for”.

The goal of our Auction Marketing Programmes is to provide our Vendor clients with an unconditional sale, and this goal is definitely not diminished by current challenges of industry auction marketing negativity and conflicting comments on real estate activity. Three weeks of marketing gives a base to work with conditional buying interest if unconditional buying interest is not achieved, at or, immediately post auction.

It is also important to note that some vendors are not always able to accept buyer expectations of price for various reasons but auction marketing is a very positive way of testing the market in a defined space of time to determine if the buyers’ price will enable them to make the lifestyle/property change they envisage.

As a foot note – I keep an eye on Australian trends through –Real Estate Conversation published by Williams media, which this week reported an increase in buyer activity and resulting more positive clearance rates particularly in Sydney and Melbourne.

Ken Ralph

Auction Services Manager