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Sales success as auctions drive up prices


Sales success as auctions drive up prices

As buyers flock to open homes on the Sunshine Coast, local real estate experts agree that auctions are the best way for vendors to sell their homes. My Property Preview discovers why.

The Coast’s property market is tracking well with many agents reporting prices are rising, and with demand outweighing supply, industry experts say auctions are the answer to optimal sales.

Steve Turner of Platinum Properties says an auction is the only way to sell property for the highest price in the least amount of time.

“It will give you the maximum price in the current market within a four-week period,” he says. “It’s an unconditional cash sale with settlement in 30 days. No other method can give you the same result.

“Auctions give you the opportunity to receive offers prior to the auction and all the offers need to be cash and unconditional prior to the auction date. Come auction day, you will have a very good idea where your property is price-wise, due to offers throughout the auction campaign. Then put all the buyers in one place under ‘auction conditions’ and you will know that the end result is the maximum amount buyers will pay for your property,” Mr Turner explains.

“We are seeing increased numbers of registered bidders at all our auctions, which shows property on the Sunshine Coast is experiencing an increase in both prices and clearance rates. This is having a marked effect on the final sale price.

“Our most recent Auction at 14 Lindeman Avenue, Buderim last week saw seven registered bidders on a Friday afternoon, in fierce competition pushing the price above the reserve.”

Gordon Macdonald of The Auction Group says auctions benefit both the seller and buyer as they have the opportunity to negotiate in a transparent way. “When buyers have a platform they can trust, it’s easy for them to put their best foot forward knowing they can see, touch and feel the whole negotiation process,” he says.

“For sellers, it’s creating the opportunity for certainty when negotiating with terms that are unconditional. The benefits of no-price marketing allows there to be pressure on prices, knowing it isn’t capped. Last year we had on average two registered bidders per auction, meaning they were in a pre-approved position or were in a position to make offers unconditionally.”

Define Property Agents principal and chief auctioneer Ross Cattle agrees that auctions, when paired with a solid marketing campaign, can lead to optimal sales results. “We recommend auctions to owners because it’s the only proven method that really works in terms of achieving the highest possible price.

“An action campaign handled by a good auction agent, accompanied with a real proper marketing campaign, leads to extraordinary results. Two weeks ago, a property was $290,000 over reserve price,” Mr Cattle explains.

Keith Blanchard, principal and sales consultant at North Shore Realty, is also riding the auction wave. “Auctions are the most successful method of sale,” he says. The advantages include a more expansive marketing campaign that includes “the very important printed media”.

“Currently, our in-room auctions for houses have a better than 90 per cent clearance rate and units are 80 per cent over the whole campaign,” he adds.

Mr Turner’s agency has also obtained stellar outcomes as a result of going to auction. “Recent market improvements have seen us sell all our recent auctions under the hammer so [that is a ]100 per cent success rate since around October.”

Mr Cattle also backs auctions for leading to better outcomes: “Almost every auction we list sells before, at or after auction, and huge portion of these sales would not have been achieved with a different strategy.”

Mr Macdonald says, “Although property auctions are the minority when compared to their private treaty counterparts, they are at the forefront of the market. In a big way, auctions are the barometer for how the market is tracking.”

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