Auction Sales Success

A fantastic auction result was achieved on Saturday January 30th by All Brisbane Realty’s Jason Bond. The landmark Teneriffe property at 4 Hastings Street, New Farm sold on auction day for $2.42million much to the owners’ delight.

To give you a bit of a background, the Georgian manor style property, which was exclusively marketed and auctioned by All Brisbane Realty, attracted a strong crowd and several keen bidders on auction day. While bidding stopped at $2.3 million and the property was passed in, negotiations post auction achieved an unconditional sales result on the same afternoon.

The iconic six-bedroom home sits majestically atop an elevated 908 square metre homesite and enjoys magnificent panoramic views from every aspect of the property. Recognisable by its wrap around verandahs, it also boasts a luxurious swimming pool and landscaped gardens.

The result also proves that auctions are an extremely effective way to sell in the current market.

Auction properties typically are on the market for a shorter period of time (an average of 30 days), and by not revealing the reserve price, the market dictates the price of what it thinks the property should be worth. You may even find that you could be very surprised as to what the market believes the property is worth, or rather, what it is willing to pay.

Another factor that makes auction ideal for this sort of market, one that is so rapidly changing and very much based on volatile global economic conditions, is that it is currently very difficult for a real estate agent to give an accurate appraisal as to what a home on the market might achieve, simply because figures of homes selling in a market that changes almost weekly are not available. An intensive high-profile auction marketing programme and a sense of urgency that is created on the day, all help achieve the best price the market is willing to pay.

Auction also finds the true cash buyer, by effectively filtering those out who cannot realistically make a cash purchase decision. This is because a sale under the hammer requires a deposit of 10% payable on the day, offering peace of mind to the seller that the contract will hold.
In coming weeks, I will also describe a private treaty sale and an exclusive listing and how they both differ to selling by auction.

Who has sold and bought by auction and what has your experience been?