Auc­tion sales clearly show mar­ket de­sire

Matamata Chronicle - - & About - RICHARD LEACH

Re­cent na­tion­wide data from the Real Es­tate In­sti­tute shows an 8 per cent drop in the num­ber of farm sales for the three months ended Fe­bru­ary 2017 com­pared to the cor­re­spond­ing pe­riod last year.

Lo­cal ru­ral prop­erty is chang­ing hands, though only when ven­dors are re­al­is­tic.

Those pric­ing a farm based on the in­come it can gen­er­ate are find­ing will­ing buy­ers.

While we are still re­cov­er­ing from the dairy cy­cle’s low point, pur­chasers need con­fi­dence that they can turn a profit from any farm they ac­quire.

Un­less ven­dors price prop­erty ac­cord­ingly, po­ten­tial pur­chasers will not be in­ter­ested.

De­ter­min­ing value based on prof­itabil­ity en­ables more first-time buy­ers to pur­chase.

New clean streams reg­u­la­tions are also mo­ti­vat­ing some es­tab­lished farm­ers to re­tire, pro­vid­ing younger farm­ers with ad­di­tional op­por­tu­ni­ties.

Auc­tions are go­ing well and are help­ing en­sure values are max­imised.

Mar­ket­ing a farm at auc­tion demon­strates the owner’s earnest in­tent to sell, es­tab­lish­ing the fo­cus for a con­cen­trated mar­ket­ing cam­paign, with ev­ery ef­fort work­ing to­wards the auc­tion date.

At auc­tion, the ven­dor sets the rules, with the auc­tion sale and pur­chase agree­ment made on their terms, en­sur­ing they main­tain con­trol of the sale con­di­tions.

Mul­ti­ple bid­ders and emo­tion­ally charged bid­ding can push prices be­yond ex­pec­ta­tions, creating a win for the ven­dor.

Auc­tion is a public and ef­fi­cient way to bring buy­ers and sell­ers to­gether, par­tic­u­larly when the lat­ter un­der­stand what their prop­erty is re­al­is­ti­cally worth.

With more farm auc­tions through­out the rest of au­tumn, we should see the con­tin­u­a­tion of favourable sales com­pleted via the auc­tion process.

Mean­while, in the lo­cal life­style prop­erty sec­tor, de­mand re­mains heavy.

Pur­chasers see these prop­er­ties as ex­tremely good value com­pared to other re­gions.

SUP­PLIED

Richard Leach

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