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Aris Dendrinos Market Update 15/07/16

July 14, 2016 by Aris Dendrinos

House Auctions

I spoke last week about our own Agency's Auction results for the first half of the year and am happy to report them to you now.

Auctions - 21
Sold - 5 (23.81%)
Sold Prior - 3
Passed In - 2 ( 9.52%)
Withdrawn - 0 ( 0.00%)

Our clearance rate was a very healthy 90.48%. This compares favourably to both the Marrickville clearance rate for the half year (75.21%) and Sydney in general which was also in the mid 70s.

I have included the reserve prices of each property to put the results in greater context. It is pleasing to know that an owner who listed their home with us in 2016 achieved an average of $37,428.57 above their reserve. We don't tend to advocate low reserves to the majority of our owners which makes this result even more impressive.

You will note in the list that the number of houses (15) was significantly higher than apartments (6). In fact every house we sold in the first six months of the year was through the Auction process whilst the overwhelming majority of apartment sales were by Private Treaty (ie. with an asking price).

This reminds me of an update I wrote in recent weeks which explained that not every property is suited for Auction. Unless the owner embraces the process and we truly believe a better price can be achieved through this method then we won't put it to Auction.

It is unsurprising that the only two properties we failed to sell under the hammer or prior were both apartments, one of which was significantly compromised by pending special levies and works which drastically affected our ability to create competition.

We also had no properties withdrawn from sale which I'm probably the most proudest to report. Many Agents will take the easy way out when a home is in the final stages of the campaign and they feel it has a slim to no chance of success and withdraw it.

Unless my owner insists, I firm believe that you run every property to Auction day no matter what. I am always reminded of the example back in the late 1990s when I was a lot younger an inexperienced and withdrew a home from Auction two days prior. I then received a call on the scheduled Auction day from a buyer outside the home who had flown back into Sydney after a three week holiday ready to bid. Anything can happen !

We sold 32/12 Leicester Street Marrickville under Auction conditions with only one registered bidder. This was achieved through clever use of the Vendor bid as well as a mutual spirit of negotiation between the buyer and seller where both were prepared to give something to get something back in return.

I view an Auction date as an appointment for the "best" buyer to meet and negotiate with the owner the highest price for a property through the Agent. This could mean an Auction like the one above or alternatively with a dozen bidders all competing for that right.

Our next two Auctions are this coming Saturday (16/7/16). Here are the details :

3.15PM - 1/70 Ewart Street Marrickville : 2 B/R fully renovated Art-Deco Apartment
4PM - 57 Premier Street Marrickville : 3 B/R freestanding period home plus car access

Both are available for a final inspection fifteen minutes prior and you are all welcome to attend.

If you can't make it they will be live streamed through our Facebook page. Simply click here for more details www.facebook.com/randwmarrickville

That's it from me. Have a great weekend and I'll see you next Thursday.

Regards

Aris Dendrinos