WHY SO MANY AUCTIONS?
All across Auckland, in many price ranges, the number of properties being sold by auction is significantly increasing. I often get comments from people wishing there were more asking prices so that we could all know what the owner wants. It is not about what the owner wants it is about what buyers would pay for a property.
The reason for more auctions is simply that owners are often getting better selling prices for their properties. We would all like to buy things cheaper than they are worth – that is human nature. We would, if we had no competition, love to buy our next house cheaper than it is worth. But by creating competition amongst buyers it is possible to establish the price they would really pay rather than what buyers would like to get away with.
Good Real Estate agents are focused on getting the best price for their selling clients as it is the seller they are working for – not the buyer. Buyers when they come to sell often remember that they had to pay a fair price and go looking for a good agent to represent them so they too can sell well.
Here is a recent case study that is very typical. The owners were looking to sell as they were going overseas. We appraised the value of their three bedroom unit with internal garage at $320,000. The 2011 council valuation is $280,000. While some buyers dropped out of the bidding between $290,000 and $320,000 the remaining two bidders took the eventual selling price to $356,000. That is $36,000 more than the logic of our appraisal said it was worth and $76,000 above the council valuation!
Auctions are not just for those top of the market properties, they also work well in all price ranges and the results are often very good for sellers with many premium prices achieved.
Currently my personal success rate at auction is 93% sold within 60 days of being on the market. The great majority of those sold under the hammer on the day.
As always, whether you, family or friends are looking to sell, buy or would like an update of your property’s current value I would be honoured to help you – just give me a call or send me an email.
October 30 2012 01:35 pm | Uncategorized
Robert Davies