Before I report on the 4th March Auction Portfolio I would like to refer to the comments in my 25th February report, and also review all of our February portfolios, “auctions” are judged by too many as sales “under the hammer”. Auction Marketing has always gathered all potential buyers – those who can immediately meet the terms of the Auction unconditional sale, those who we can move to that status by auction day, and those who can complete a conditional sale post auction.
All 37 properties within the 4th,11th 18th and 25th auction portfolios have attracted sales with the exception of – five that have received offers but for various reasons the vendors have at the time of writing this report been unable to accept. One has been withdrawn, the marketing for three have highlighted, for differing reasons, buyer challenges.
So, a very positive encouraging response and more buyer activity than ill-informed information may have suggested.
There is good buyer activity, yes, they are largely conservative/cautious, but nevertheless we consider that we are achieving very good price results for our vendor clients within a very defined marketing period, acknowledging that our challenge always is to meet vendor price expectations with buyer price expectations.
4th March portfolio comprised eight properties, Pakuranga, Sunnyhills, Bucklands Beach, Highland Park, Cockle Bay, Dannemora.
The Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions, again enjoyed a pleasing attendance, including people who had registered buying interest, those who had expressed conditional buying interest and those who came along to see what is selling and for what price to give an idea of what is happening very currently in the real estate market.
We had identified bidding registrations for four of the properties.
Two sold under the hammer, one sold immediately post auction, two have received offers with negotiations to be finalised, two we continue to work with buyers, one still requires positive buyer commitment.
There are always various reasons why potential buyers cannot meet the terms of an Auction For Sale and Purchase Agreement which is a totally unconditional agreement, however, as stated above, we try to work with these potential buyers to attract the best conditional sale for our client vendors.
The goal of our Auction Marketing Programmes is provide our Vendor clients with an unconditional sale , or, after three weeks of marketing there is a base to work with conditional buying interest if unconditional buying interest is not achieved, at or, immediately post auction.
It is also important to note that some vendors are not always able to accept buyer expectations of price for various reasons but auction marketing is a very positive way of testing the market in a defined space of time to determine if the buyers’ price will enable them to make the lifestyle/ property change they envisage.
As a foot note – I keep an eye on Australian trends through ‘The Real Estate Conversation’ published by Williams media, which this week reported preliminary auction clearance rates in Sydney nudged higher, as vendors adjusted their expectations to meet lower prices from savvy buyers. Melbourne quoted Marshall White Director, John Bongiorno – says buyers are “playing games”. “I know we are not selling a lot of properties under the hammer at the moment but buyers, I think, are playing games by waiting and trying to negotiate post-auction. It is quite frustrating for the vendors and for the buyers themselves.”
Auction Services Manager