Auc­tions grow­ing in pop­u­lar­ity

The Weekend Post - Real Estate - - Front Page - BIANCA KEE­GAN

AUC­TIONS are be­com­ing a more popular way of sell­ing in Cairns.

Clear­ance rates through auc­tions in the city have in­creased to higher than the state av­er­age, ac­cord­ing to lead­ing prop­erty sites.

Auc­tion clear­ance rates for houses in Cairns is about 38 per cent, com­pared to the state av­er­age of 36 per cent. But Cairns auc­tion­eer Darcy Smith said the clear­ance rates were likely to be higher than 38 per cent.

He s ol da t wo- bed­room apart­ment along Min­nie St at Par­ra­matta Park last month which had seven reg­is­tered bid­ders. A first home­buyer won the auc­tion.

“I think auc­tions are be­com­ing a lot more popular and a lot more suc­cess­ful as a way of sell­ing,’’ Mr Smith said.

“Buy­ers are be­com­ing more familiar with auc­tions and sell­ers are start­ing to see the benefits in the method.”

Mr Smith said auc­tions could present a quicker way of sell­ing and ven­dors didn’t need to ex­pose their price to the mar­ket.

Queens­land prop­erty laws don’t al­low price guides for auc­tions – un­like other states.

“I reckon it might be higher than 36 per cent – up to 50/50,’’ he said.

“The last three auc­tions we have done, two have sold un­der the ham­mer and one passed in.

“I think we’ll see more of a trend like Mel­bourne of Syd­ney with more auc­tions.”

Pro­fes­sion­als Cairns South agent Stu­art Lovell said price of­ten be­came a bar­rier when sell­ing a house.

“When you have an auc­tion, the buy­ers are at­tracted to come through the prop­erty, the price isn’t there to scare them off,’’ Mr Lovell said.

“If you put a price on the prop­erty, the buyer might see it as out of their price range.

“The whole idea is to get peo­ple through the door – once they are in the house, they fall in love it, they go back and do their homework and get their pre-ap­proval with the bank.”

In two re­cent auc­tion cam­paigns Mr Lovell was in­volved with both sold be­fore auc­tion.

“It’s a big thing in cap­i­tal cities,’’ he added. “Cairns is get­ting there slowly.

“I think it’s a great way to sell a prop­erty.”

Ac­cord­ing to RP Data, the na­tional auc­tion clear­ance rate was boosted to 79 per cent for the week end­ing April 12, which was largely lifted by the Syd­ney and Mel­bourne mar­kets.

The weekly data did not break down re­gional clear­ance rates but Bris­bane recorded a 50.9 per cent clear­ance rate in the same week.

Pic­ture: JUSTIN BRIERTY

ON A WIN­NER: DJ Smith Prop­erty auc­tion­eer Darcy Smith sold this Min­nie St apart­ment to a first-home buyer and says auc­tions are a more suc­cess­ful way of sell­ing.

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