Auctions still best, say agents

The Sunday Telegraph (Sydney) - - THE SAUCE -

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.”

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.