I never think an auction is a good way to sell a normal apartment. The auction process benefits the real estate agent more than the seller.
Ray White South Brisbane in its latest newsletter writes:
"Last night Ray White South Brisbane & CBD Residential again held
it's monthly In Room Gala Auctions at the Greek Club with 19 properties
going under the hammer. A busy night was had by all with over 200 people
attending and 48 registered bidders on the night.
8 properties sold under the hammer & further negotiations are
taking place on 4 other properties which should deliver over 60%
clearance showing again that the 'hammer' beats a flat market."
But HS Brisbane Property's newsletter this weeks says:
"Love affair" with Auctions at an end!
Once touted as the best way to
achieve the best price, our 'love affair' with auctions seems well and truly at
an end. Just on 80% of sellers in Queensland
would want to sell their
property through an auction, preferring to go through the "normal"
private treaty sales process are even
more sceptical, with a staggering 83%*
avoiding auctions. The main reasons for buyers'
steering clear of this type of purchasing process are:
- Worry about paying too much, due
to the excitement of the auction
- Wasting money with property
searches etc. if you don't end up winning the auction
- Stress of the bidding process
Property sales statistics reflect
the Queenslanders' scepticism with less than 25% of all Brisbane homes being sold by auction, while
it's around 50% nationwide.
The climax of the renovation reality
show, The Block, gave many viewers
a wake-up call as 3 of the 4 painstakingly renovated properties didn't even
achieve reserve price in the all-deciding auction finale!
Previously we've highlighted the
pitfalls of auctions, and it seems that the fundamentals of the auction process
are far from ideal for the current Brisbane - and particularly CBD -
residential property market ... and many Queensland sellers and buyers appear
to see it this way too!"
"Auctions for Apartments"
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