Dig deep into your memory banks and ask yourself how many auction properties you would have seen say five years ago. In South Auckland the answerer is not very many and those you did see would be big, flash homes with something special on offer. What about now?
Let me give you some numbers to show the huge shift in real estate marketing that is currently happening in our part of the world. Year to date Manurewa Branch has listed over 350 properties of all types. Of those fifty-five were auctioned and we sold forty-six. That’s seventy-five percent success rate. Let’s compare that story to say your old fashioned general agency (usually listing with more than one company). We listed a whopping 122 generals but only thirty-eight of them actually sold. A clearance rate of less than thirty-eight percent. Ok, I hear you ask why can that be? Logic should be that if you give your home to more than one agent you must increase the chance of a sale surely? The truth is the exact opposite. We could argue all day about why but the reality is that auction is just about the most effective marketing tool available to you as vendor.
That’s what happening in Manurewa and it’s only a reflection of our company as a whole and the Auckland market in general. Again the numbers tell the story much better. Barfoot & Thompson auctioned 3,044 properties year to date. Same time last year it was 1,660. Fifty-five percent increase in just one year. Now get this part, in the last seven days alone nearly 1,200 buyers registered to bid at auction compared to the same time last year with 600 registrations. Its not just vendors who get the auction process, increasingly, so to are the buyers being conditioned to auction as the norm. The knee jerk reaction from both buyers and vendors that auction doesn’t work in fast becoming very dated.
The graph is a page from Fiona and my listing presentation and it really show our prospective vendors the whole story on marketing method efficiency. This data is from last year so is a wee bit tied. When we get time to update the info the message will probably show an even higher auction success story.
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