Saturday, May 9, 2015

Auction schmauction

This weeks real estate advertorial at the Cairns Post features a glowing endorsement of auctions: Auctions all the rage in Cairns property market
RE/MAX Cairns Real ­Estate Services owner Tony Williamson attributed the booming trend to television.
“More and more shows are demonstrating how an auction works, from Storage Hunters and Antiques Roadshow to The Block, so buyers are learning how to compete at them,” he said.
“In any market in demand, auctions are by far the best way to sell, because you still get to set the reserve and if there’s enough competition among buyers then we can push ­bidding above that.”
He said while a majority of sales in southern capitals were by auction, in Cairns about 10 per cent of properties sell under the hammer, but he said his agency was “trying to steer the ship around” with bulk auction events like one he held recently involving 14 properties that attracted a full house of bidders and spectators.

A majority of sales in southern capitals being auction doesn't sound quite right? This is a bit dated with numbers from 2011 and before the recent surge in Sydney but auction numbers then varied between 3% and 26% with higher rates towards the inner city: Fewer Sydney vendors selling by auction: What percentage of homes sold under the hammer? A regional breakdown: APM

I expect auction rates would likely have increased in Sydney since then so I also threw a tweet query on auctions to real estate identity and enemy of the property seminar spruiker Neil Jenman, who is a critic of auctions:

Neil Jenman@neiljenman 2 hours ago
NONSENSE! To prove it: ALL Cairns sellers can have my book FREE (May only)! See why AUCTIONS = WORST way to sell. 1800 1800 18.
Yes, it's a Loose Change exclusive offer from Neil Jenman!
The most recent Remax bulk auction in Cairns I am aware of was April 28 at Dunwoodys. This was of interest as there was a small unit to be auctioned in the old Park Regis near the hospital which is nearby my own salubrious bohemian unit building. I didn't go to the auction as a neighbor who also has an investment unit in the Park Regis was attending. Feedback was that she stayed for 8 auctions of which one had sold prior and only one sold at the auction. The Park Regis unit was passed in on a single bid at $101k (reserve believed to be $200k) and is now on the market at "Low $200'000s".
That all went well then  o_O

Note: There is also a handy guide to selling your property at Choice.

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