Sydney Property Market Update 20/09/2018
I've been asked by several owners...
That are thinking of selling over the last few months why should they choose to Auction their property when the Sydney clearance rates have been consistently sitting just above the 50% mark.
The answer is quite simple.
Even if the property doesn't sell on the day the worst case scenario is you have four weeks of solid consistent feedback from the buying public to indicate what price is achievable.
Think about it for a moment
Putting a property on the market for sale by private treaty where a publicly advertised asking price is set before anyone walks through the door is a guessing game. Granted, if you engage a good agent and pay close attention to the recent sales activity you could be very accurate however it is still an "educated guess".
But what if you aren't close? What happens next?
That's right, the good old price reduction. If you were to ask the average buyer what their instinctual knee jerk reaction is to seeing a property price go down I bet you nearly all of them would give you a reason that marginalises the vendor.
"Something is wrong with the property."
"The vendor wants too much."
"The vendor is desperate to sell."
Very few buyers initially think that a lower price means it is better value now and therefore should be considered more strongly.
Brings things to a head more definitively. Many buyers also like the fact that there is an actual deadline they can work towards whilst they get on with their busy lives. At this time in this place the owner will be ready to do a deal with you.
Which brings me to the most advantageous reason an Auction should still be considered. If someone is willing to put their hand up to bid either during proceedings but also before or afterwards at a price you can live with, then it is an "unconditional" sale. And let me tell you in our world right now a sale without a cooling off period that's not subject to anything, in particular finance, is absolute pure gold.
I've had post Auction negotiations recently drag out for as long as two hours but you know what, we got the deal done on the day. What many people don't realise is that up until midnight of the day of the Auction if a contract is signed it is still unconditional.
So if that falls through, then we price it. And in my experience a property that's priced straight after an Auction is viewed entirely differently by buyers to one that is reduced after being for sale for four weeks.
That's it from me. Have a great weekend and I'll see you next Thursday.
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