Ham­mer out suc­cess­ful sale

Herald Sun - Property - - NEWS - AMANDA LU­CAS

WHEN it comes time to sell your prop­erty, the age-old ar­gu­ment of auc­tion ver­sus pri­vate sale nat­u­rally comes to the fore.

There is no one best prac­tice but the gen­eral con­sen­sus among prop­erty pro­fes­sion­als is that both hous­ing type and mar­ket con­fi­dence play piv­otal roles.

CoreLogic RP Data auc­tions spokesman Kevin Bro­gan crunched com­bined cap­i­tal city data over the 12 months to Novem­ber last year and found higher val­ued and more un­usual prop­er­ties were taken to auc­tion.

“If you have a house in a street and there are 10 oth­ers like it, you have a pretty good idea of what it’s worth,” Mr Bro­gan said.

“But if it’s unique or un­usual you might not be able to pick what it’s worth so you take it to auc­tion on the pro­viso there’s enough in­ter­est.

“Look­ing at the com­bined cap­i­tal city data over the past 12 months to Novem­ber, you see the gen­eral me­dian price of houses that sold at auc­tion is about $950,000,” Mr Bro­gan said.

“Sold by pri­vate treaty that me­dian is $530,000, so that tells you a story about types of prop­er­ties taken to auc­tion.”

Al­most half (45 per cent) of houses sold at auc­tion were sold for at least $1 mil­lion, whereas only 12.5 per cent of houses sold via pri­vate sale fetched more than $1 mil­lion.

“If you’ve got a prop­erty you think will be a suc­cess­ful prop­erty to take to auc­tion, agents will tell you it of­fers the max­i­mum chance of suc­cess,” Mr Bro­gan said.

“If you’ve got in­ter­ested par­ties it brings mat­ters to a head so it’s a very ef­fec­tive tool.”

Mar­ket an­a­lyst and buy­ers’ agent Si­mon Press­ley of Prop­er­ty­ol­ogy agrees, adding strength of mar­ket is key.

“I would go to auc­tion in a ris­ing mar­ket when you could be con­fi­dent there’s go­ing to be com­pe­ti­tion be­cause of the state of the mar­ket,” Mr Press­ley said. “And other times, it might be best if there’s some­thing niche about it.

“That’s of­ten why more ex­pen­sive homes go to auc­tion be­cause it’s harder to com­pare $3 mil­lion homes to other $3 mil­lion homes.”

News Corp colum­nist and Ray White auc­tion­eer Haes­ley Cush be­lieves any prop­erty can and, with the right mar­ket­ing, should be auc­tioned as long as the agent knows what they’re do­ing.

“Auc­tion al­lows buy­ers and po­ten­tial buy­ers to judge a prop­erty on the fea­tures and ben­e­fits with­out price in­volved,” he said.

“The al­ter­na­tive is that buy­ers dis­re­gard prop­er­ties all the time based on a listed price at­tached to pho­tos only to find it’s even­tu­ally sold for a price they would’ve paid.

“The stats we carry show auc­tions get more buy­ers through the door be­cause they don’t have a price and are usu­ally bet­ter pro­moted.”

Mr Cush said auc­tions opened up pos­si­bil­i­ties rather than cap­ping a prop­erty by price.

“If your prop­erty has no price on it, the value is the value you at­tract,” he said.

“Al­ter­na­tively, if you put a price on it and it’s the wrong price then you’re wast­ing ad­ver­tis­ing money and time.”

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