Your Property News March 2024

I love watching “The Block” auctions. I don’t watch the whole series rather just the final show where the drama of the series unfolds, and human reaction is on display at its best (or worst). The final show is a wonderful litmus test as to how the buying public responds to the homes design/selling method/agent/marketing and market sentiment. Or in other words, the value they see in the home.

In the last series, 5 properties went to Auction – four sold on the day, one sold after. Of the four that sold on the day, two did exceptionally well whilst the other two did okay – they just met reserve. Interestingly, the one that did not sell and was passed in, has finally sold this month. Four months later, it has achieved a strong price putting the contestants into third place – in other words, they made a tidy profit as it sold above the reserve price..

The values achieved reflected what those buyers (at the time of the Auction) were prepared to pay to secure the home. The buyers present on the day were ready to purchase – they were prepared to win at all costs and were covered financially to outlay the amounts required to outbid the competition.

Does this happen in real life you may ask? Occasionally, yes. In real life, generally there are one or two bidders at the end who are prepared to purchase the property (at all costs). Most bidders have a limit and can’t increase that limit without seeking confirmation from their financier that they are covered to expend that additional amount. They may be able to purchase the property at a higher figure outside of Auction conditions.

This leads to the question, do Auctions achieve the best price for the seller? In Queensland, the preferred method of sale, based on the number of transactions, is Private Treaty (For Sale, By Negotiation, Offers over). In February, Brisbane experienced a 46.4% clearance rate from 547 properties that went to Auction – 228 sold at Auction, 184 passed in, with 13% sold prior and 16% withdrawn from market according to a recent article published by Domain.com.au. This was the lowest clearance rate of any capital city. For reference, Sydney had 3,659 properties and Melbourne 3,465 properties taken to Auction during February.

An Auction by the fact it is held on a particular date and at a specific time, creates a level of urgency. By grouping all interested buyers together at one time it can also have the effect of creating a competitive environment. It can help ensure the highest possible price is achieved at the time. Traditionally private treaty /private sale gives more control to the seller, You can take time to consider offers and negotiate until you are happy to make the sale. It also allows buyers to purchase from day 1. Your home may have just come to market, but the buyer may have been looking for 6, 12 or 18 months. Your home comes onto the market and its exactly what they want, and they want to purchase it today. Why make them wait another 3 to 4 weeks until the auction date? If the price and terms suit you, it’s time to sell.

Our “quietly” on the market list is growing. If you are looking for your next home or an investment property, reach out if you’d like additional details. We have recently sold several properties in the area “off market”.

At Butler+Co, we don’t just continue to perform, we outperform. Use our experience and expertise in the local market to guide you out of your current home and into your new home.

We are here to assist you with all your real estate needs – we work for you.

Amanda Butler – Principal – 0438 767 439 – [email protected]

In our Clients words

Highly recommend. Amanda is an experienced agent whose knowledge and professionalism enabled a smooth efficient sale. Intelligent, open and regular communication put us at ease throughout!

Helen, Wooloowint