Here's something truly unique. Last month, a historical Burrawang Cafe and residence in Burrawang, NSW was put to auction. What was interesting and unusual about this auction was it was Australia’s first ‘reverse auction’. Bidding started at "fair market value" and went down till someone made a bid. The first bid was to be the only bid and the buyer of the property.
While the uniqueness of the marketing and auction style drew plenty of interest to the property (along with 3 registered bidders), it failed to sell (So we won’t be recommending this type of Auction to any of our clients).
Click HERE to watch a YouTube video on it.
We’ve recently seen a few new sale gimmicks when it comes to selling houses (including free cars and money back), but in most cases, they turn out to be just that – gimmicks.
We’re of the opinion that there is no need to reinvent the wheel, simply do the basics right, and you’ll get a great result. An example of that is a home we took to Auction last weekend. 42 Lockerbie Street Kangaroo Point drew 10 registered bidders and sold under the hammer for $825,000. The seller took onboard all the advice we gave her, the home was presented beautifully, it had excellent exposure and as a result, the buyers were there on the day.
If you are considering selling, please drop me a line, I’m happy to help you put together a plan to get the best possible result.
As an estate agent that runs a lot of auctions, I often get asked by buyers "what do I need to do to get ready for it?"
The aim of this blog is to help buyers with the auction process and to give you some tips on bidding at auction.
I often hear from people that they don’t like buying at auction due to the pressure of having to make a decision quickly. Perception is a funny thing because if you are prepared, this simply isn’t true.
The key advantage of buying at auction is this - due to the unpredictable nature of this market and the auction, you may end up paying less than you expected for the home, this means more money left over for that deck or that extra bathroom you wanted.
The other key advantage of an auction is you can see your competition. Once the property is called on the market, you can see who your competition is and what they are willing to pay. This is a true indication of the market value of the home. You can rest easy knowing that you didn’t pay too much, you simply paid market value.
The secret of buying at auction is to be prepared, start getting ready as soon as you can. Here are some tips to help you get ready.
1. The first step is to make a decision on what you are prepared to pay. Set yourself a limit and stick to it however, here is the secret, don’t set that limit as a round number as that is what a lot of people do. If you believe it’s an $800,000 home, you may set your limit at $802,500. That extra bid may be what gets you the home.
2. Prior to the auction, check the property and the contract thoroughly. Ask the agent for a copy of the contract and ask your solicitor to read over it. Get a building and pest inspection done and use this to help you with what you are prepared to pay. If issues come up, build that into your purchase price. Also if something unexpected comes up, let the agent know that way he can pass this information onto the seller, they can then build that into what price they are prepared to sell the home for.
3. Speak to a mortgage broker or your bank about a pre approval for finance. Once you buy the home, it’s yours so you want to be able to ensure you can settle.
4. Speak to the agent about deposit and settlement. The standard agreement is 10% deposit and 30 day settlement however if that doesn’t suit, you can arrange a more suitable settlement and deposit. The agent simply needs to speak to the seller and get their approval. That said, sometimes the seller needs time to make this decision so give the agent as much time as you can to get the change in terms agreed to.
5. Attend other auctions to see how they work. If you can, watch the auctioneer that will be auctioning the home you have interest in, you may pick up some of their techniques that will give you the upper hand on other bidders on the day of your auction.
6. Don’t be afraid to ask for help. If the whole auction process scares you, ask for help from a friend or professional. You will be surprised how easy the whole thing is but it’s always nice to have someone there with you if you need it.
7. The last step is probably the most important – relax, don’t let the auction intimidate you. At the end of the day it is simply a negotiation, and remember the biggest advantage of the auction for you as the buyer is that it is public, you can see your competition rather than things being done behind closed doors.
In summary, if you are prepared, know what you are willing to pay and have done your research, bid with confidence as auction is by far the best way to buy real estate in this current market.
What a way to end the year! On Saturday, we had 5 auctions booked, 2 of them we sold prior to this weekend and the other 3, we sold under the hammer.
Saturdays 3 auctions ranged from a modest home at 15 Barnes Ct, Mt Crosby, to a home that was effected by the Brisbane floods at 104 Brisbane Corso Fairfield, to a large family home at 79 Priors Pocket Rd, Moggill.
Congratulations to the entire Brisbane Real Estate team. 5 from 5, 100% clearance rate is an exceptional effort and one that we are very proud of. In a time when we are consistently told how poor the market is, here is a glimmer of good news.
If you are considering selling your home in the new year, please say hello. I would welcome the opportunity to meet with you and show you how I can get your home sold.
I would like to take this opportunity to wish you a great holiday season and I look forward to us working together in 2012.