Auctions still best, say agents
REAL estate agents insist an auction campaign is still the best way to sell your property in most parts of Sydney despite new data showing clearance rates as low as 15 per cent in some areas.
The theory is an auction sale at least encourages buyers to act quickly, even if the property does not sell on the day.
Many in the West are now abandoning auctions in favour of private treaty but agent Blaz Dejanovic of Ray White still swears by them.
“I tend to do auctions because no matter what price you put up there on the internet, buyers are still looking for a bargain — they come in 10 per cent lower,” he said.
“And then they go home, watch the news and see house prices dropping to 2020 and they procrastinate, so we try to get the best price when there’s urgency at an auction.”
He said even though there were 42 per cent fewer auctions this year than last and clearance rates have averaged 33 per cent, some homeowners are achieving higher-thanexpected results.
He helped Abbotsbury dentist Ben Nguyen and his wife, Ngoc, sell their house for $1.85 million — $250,000 above reserve — under the hammer last Saturday.
“We’d heard a lot of bad stories about poor clearance rates and people not getting the price they wanted and buyers not able to get finance,” Mr Nguyen said.
“We were really scared … but going to auction was the best move we ever made.”
CoreLogic data prepared for The Sunday Telegraph shows there were 17.5 per cent fewer auctions this year across the city but there were 8.7 per cent more in the east.
Even though clearance rates on average are well down (54 per cent), veteran eastern suburbs agent Bob Guth of Bradfield Cleary said: “When the market is weak, it’s the best way of effecting a sale.”