Real estate industry experts report that auction clearance rates are declining as we see less homes going to auction this past spring.
Real Estate Institute of Victoria figures for September show the number of auctions tumbled from 4,132 in 2017 to 3,260 in 2018, and an increasing number of properties being sold prior to auction.
There is a shift back to private sales and CoreLogic reports from Saturday November 24 indicate that of the 950 Victorian scheduled auctions that day, 302 sold and 105 properties sold pre-auction.
In a softening real estate market and post-Royal Commission into the banks, credit tightening conditions and the difficulties surrounding refinancing to buy property, we are encouraging vendors to strongly consider offers prior to their auction date. Why? To avoid their home possibly passing in on the day.
Links Property agent Suzy Jones says a home will definitely sell pre-auction if the offer is too good to refuse.
“As agents, we may receive limited interest in a home from buyers,” Ms Jones said.
“Or the vendor has overcommitted elsewhere and is keen to sell quickly; these are just a few other reasons why a property may also sell before auction.
“Our recent pre-auction sale of number 16 Ocean Boulevard in Jan Juc saw six generous offers from two eager bidders battling it out to call this Surf Coast beach house home.
“The vendors’ expectations were exceeded with the successful bid and the property was sold.”
Links Property are big believers in striking while the iron is hot. If reasonable offers close to or above the asking price have been received five days into a four-week property marketing campaign, Links would be encouraging the vendor to move to exchange a sale.
“By offering a flexible settlement or deposit terms, you can drive the price up for your vendor,” Ms Jones said.
“Not all buyers have 10 per cent deposit in the bank or have secured their finance so you can also settle i traditional terms; 60 or 90 days.”
No matter what the selling terms, auction, expressions of interest or set term sale method, a good agent will be working their database very hard to sell your home.
A popular real estate saying states that it’s not how long you have been in the market but how long the buyer has been in the market.
If you are looking to sell, buy or rent, phone Links Property. The knowledgeable team shares more than 30 years of collective real estate sales and marketing experience and the placing of more than 3,000 happy families into the best Surf Coast homes.
For more information, phone Lynne Hayden on 0415 966 471 or Suzy Jones on 0438 438 388.